Thankful for Social Security

You probably have never heard of a fellow named Ernest Ackerman, but he was the first person in the U.S. to receive Social Security benefits. That was in January 1937—and he received 17 cents! But that was a good return: he had been a member for just one day and had contributed only five cents. 

Creation of Social Security

The Social Security Administration has an online 40-page document titled “Historical Background And Development Of Social Security.” For those who want (and have the time to read!) detailed information, that is the place to go. Here I will just write briefly about the years from 1933 to 1940.

There had long been a dire need in this country for financial help for the elderly. One of the most popular plans before 1935 was the Townsend Plan as proposed by Francis Townsend (b. 1/13/1867).

In 1933, Townsend launched his career as an old-age activist, proposing that every retired person over 60 be paid $200 per month—with the stipulation that they had to spend the money within 30 days (to stimulate the economy).

Within two years, there were over 3,400 Townsend Plan Clubs in the U.S. Their popularity prompted FDR to propose Social Security and then spurred Congress to pass the Social Security Act (SSA), which President Roosevelt signed into law in August 1935.**

Taxes were collected for the first time 85 years ago this month, in January 1937, including Ackerman’s nickel. However, the first monthly retirement check was not issued until January 31, 1940. That check was sent to Ida May Fuller of Ludlow, Vermont, and was for $22.54.

Opposition to Social Security

As you might well guess, there was considerable opposition to the SSA of 1935 as there was to most of FDR’s New Deal proposals. From the very beginning, one of the main arguments against Social Security was that it was a form of socialism. 

But by 1936 economic conditions in the U.S. had improved considerably and Roosevelt was widely popular. So, in spite of the opposition to the New Deal by Republicans and criticism of Social Security as being socialist, Roosevelt was re-elected by a landslide.

In July 1965, under the leadership of President Johnson, Congress enacted Medicare under Title XVIII of the Social Security Act to provide health insurance to people aged 65 and older, regardless of income or medical history. 

Opposition to the federal government passing legislation for the benefit of the general public increased after 1981, with President Reagan declaring in his inaugural address “. . . government is not the solution to our problem; government is the problem.” 

Conservative Republicans ever since have consistently used Reagan’s words and their opposition to socialism to oppose greater levels of healthcare, such as their unified opposition to “Obamacare” in 2010, and some even wanting to alter or dismantle Social Security.

Gratitude for Social Security

Millions and millions of USAmericans (including me), though, are deeply grateful for Social Security and Medicare. And for the benefit of a wider public, many (again, including me) are in full support of expanding Medicare and “Obamacare,” which has steadily gained in popularity.

A 2019 Gallup poll indicated that “Social Security is a mainstay of older Americans’ financial wherewithal, and . . . a system Americans greatly value.”

The same article reports that some 57% of retirees indicated that Social Security is a major source of income in their retirement, eclipsing by far the second and third sources—retirement accounts such as 401(k)s and IRAs, and work-sponsored pension plans.

Similarly, Medicare/Medicaid also has widespread public support, and a strong majority now believe that those benefits should be expanded.

And then according to a Kaiser Family Foundation poll in Oct. 2021, nearly 60% of all U.S. adults approved of “Obamacare,” the highest percentage of approval since its beginning. It was opposed, though, by 72% of the Republicans polled.

But yes, along with so many others I have great gratitude for Social Security (and Medicare) which has provided so much financial help through the years since June and I turned 65.

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** Here is the link to Heather Cox Richardson’s informative four-page “letter” posted on Aug. 14, 2021, the anniversary of Roosevelt’s signing the SSA into law. It is partly about Francis Townsend, but has more about Frances Perkins, FDR’s Secretary of Labor.