On August 15, 1935, President Franklin D. Roosevelt signed the Social Security Act into law. Responding to the widespread suffering caused by the Great Depression, President Roosevelt asked Congress for “social security” legislation on January 17, 1935. The Act would provide old-age benefits that would be financed by a payroll tax on employers and employees. The system later expanded to provide benefits for the disabled, dependents, and the unemployed. Prior to the Social Security Act, elderly people often faced the prospect of poverty upon retirement.
More information is available at: