Social Security Act (SSA)

Definition

Enacted in 1935, this law established federal old-age benefits and assistance for the unemployed, families with dependent children, certain disabled individuals, and public health services.

Analogy

Consider SSA as a safety net at a circus trapeze show. Just as performers can take risks knowing the net is there to catch them if they fall, SSA provides a safety net for people who might otherwise be financially vulnerable.

Related terms

New Deal: A series of programs and projects instituted during the Great Depression by President Franklin D. Roosevelt that aimed to restore prosperity to Americans.

Welfare State: A concept in which the government plays a key role in protecting and promoting the economic and social well-being of its citizens.

Medicare: A federal program that provides health coverage if you are 65 or older or have certain disabilities.