Social Security Act continues to help Americans during challenging times

On Thursday night at the University of Denver, Governor Mitt Romney and President Barack Obama had their first debate of the 2012 Presidential election season.  For the majority of the debate the candidates discussed their views about the economic and jobs outlook for the future of America.  It is clear that the effects of the most recent recession are still lingering. 

Watching the debate made me think of the resources that Americans have depended on during the worst economic situation since the Great Depression.  These resources include Social Security and Unemployment Insurance (UI).

August 14, 2010 marked the 75^th anniversary of the Social Security Act.  The act was signed into law on August 14, 1935 by President Franklin D. Roosevelt.  The act has various provisions for workers who retire, suffer a death of a family member, lose their job, become disabled, or need welfare assistance.  The federal Social Security Act encouraged states to create their own Unemployment Insurance laws.  There were seven states that enacted UI legislation prior to the creation of the federal mandate.  In 1932, Wisconsin became the first state in the U.S. to create an Unemployment Insurance law.  In addition to Wisconsin, the other states were: California, Massachusetts, New Hampshire, New York, Utah, and Washington.    

President Obama declared August 14, 2010 as the 75^th anniversary of the Social Security Act.  In his Presidential Proclamation address Obama said, “Since 1935, it has been expanded to include dependent and survivor benefits, disability insurance, and guaranteed medical insurance for seniors through Medicare.  It is a lasting promise that we can retire with dignity and peace of mind, that workers who become disabled can support themselves, and that families who suffer the loss of a loved one will not live in poverty.” 

Since the passage of the Social Security Act, Americans who have lost their jobs from a layoff have depended on the Unemployment Insurance program.  The program provides workers who have lost their jobs with income while they search for other forms of employment or gain training for a new career or job.  Unemployment Insurance is a joint federal-state program and it is one of the most important provisions of the Social Security Act.  In a statement released on August 13, 2010, U.S. Representative Jim McDermott (D-WA) spoke about the impact that Unemployment Insurance has had for millions of unemployed U.S. workers.  “Since its inception, it has helped more than 480 million unemployed workers in all fifty states,” McDermott said.

For the 75^th anniversary of the Social Security Act, U.S. Secretary of Labor Hilda L. Solis commented on the Unemployment Insurance program as well.  “Beyond the benefit to individual workers, Unemployment Insurance provides an important boost to the nation’s economy.  Unemployment Insurance recipients spend their benefits on food, fuel, utility bills and other necessities.  Every dollar that goes into the program results in $1.60 in economic output.  When consumers lose jobs and cannot spend, businesses suffer.  Unemployment Insurance softens the economic blow of layoffs by allowing workers to spend money in their local economies.”