Before the 1930s, support for the elderly was a matter of local government and family concern rather than a federal government concern. The Depression proved that way of approaching the situation was inadequate. So, as part of the New Deal, the Roosevelt Administration created the Old Age, Survivors Insurance program (OASI) through Title II of the Social Security Act of 1935 (SSA). “Social Security” is the term commonly used to describe the program.
The SSA created a nationwide system of unemployment insurance (Title III) and a system of federal/state administered cash assistance programs (i.e., public welfare) for the needy aged (Title I), the blind (Title X), and dependent children (Title IV). (http://www.socialwelfarehistory.com/eras/the-new-deal-part-ii/) Social Security focused on providing economic security for the elderly by creating a work-related, contributory system in which workers would provide for their own future security through taxes paid while employed. Thus, it was an alternative to the radical changes proposed by demagogues such as Huey Long (see below). (http://www.u-s-history.com/pages/h1609.html)
Under SSA, monthly benefits were to begin in 1942, with the period 1937-1942 used both to build up the trust funds and to provide a minimum period for participation in order to qualify for monthly benefits. From 1937 until 1940, Social Security paid benefits in the form of a single, lump-sum payment at retirement. The purpose of these one-time payments was to provide some “payback” to those people who contributed to the program but would not participate long enough to be vested for monthly benefits.
The first person to receive such a payment was Ernest Ackerman of Cleveland, Ohio, who retired one day before the Social Security System went into effect. For his one day in the program, Ackerman had a nickel withheld from his paycheck. He then received a lump-sum payment of 17 cents. The average lump sum was $58.06. The smallest payment ever made by the SSA was for a five cent contribution! (http://www.allgov.com/departments/independent-agencies/social-security-administration?agencyid=7305) Over the years, Congress would make significant changes to the Social Security program, greatly expanding it beyond the vision of the New Deal.
“Ida Mae (Social Security Song),” is a song written by Joe Glazer about Ida Mae Fuller, the first woman to receive a social security check. www.youtube.com/watch?v=kbO1SeY5lj4
Ida Mae, Ida Mae, she got her pension check today
She did a little jig and yelled whoopee
God Bless Social SecurityThe mailman put that check in her hand
She’s the first one in the land
Twenty two dollars every month
Ida Mae don’t spend it all at onceIda Mae, Ida Mae, she got her pension check today
She did a little jig and yelled whoopee
God Bless Social SecurityShe wasn’t famous didn’t have good looks
But she got her name in the history books
They put her name down because she was number one
Started something that’s still going onAnd since that day in 1940
Checks been rolling, Lordy, Lordy
In the footsteps of Ida Mae
Millions get their checks today
Like Ida Mae they yell Whoopee
God Bless Social SecurityIda Mae, Ida Mae, she got her pension check today
She did a little jig and yelled whoopee
God Bless Social Security
God Bless Social Security
I need my social security
Gotta have my social security