A Historical Analysis Of The Social Security Program In The United States

Economic security means that sufficient provision has been made to furnish at least the basic material needs of an individual or family. Social insurance is one of the basic instruments used to combat economic insecurity. It is not easy to define economic insecurity but there are several basic factors involved. The loss of income is a factor that could lead to economic insecurity. Job separation arising from old age, accidental injury, sickness and death of the wage earner are the major forces giving rise to economic insecurity. Society has attacked the problem of economic insecurity in several ways. Regulation, alleviation, and prevention have been established as the basic methods used to approach the problems of economic security. The term social security is new in our society. Social security is a term which involves social insurance, social assistance, and related public programs. The United States was not the first country to have a social security-type program but it was not until the passage of the social. Security Act in the United States on August 14, 1935, that the term became common throughout the world. The main objective of social security is to replace part of the earnings that have stopped or reduced because the worker retires, dies, or becomes disabled. Social security is based on similar principles as private insurance, with elements to accomplish its social purpose and to keep it the least expensive. There are certain differences between commercial insurance and private insurance on the one hand and social security insurance, on the other; but the general idea is the same. Under the social security program, the whole system is operated by the federal government and some people get more benefits than others in relation to their contributions. Several services are provided through Federal grants to States under the Social Security Act