The term refers to a landmark piece of legislation enacted in the United States during the New Deal era. This law established a system of old-age benefits for workers, benefits for victims of industrial accidents, unemployment insurance, aid for dependent mothers and children, the blind, and the physically handicapped. For example, an elderly worker who contributed to the system during their working years would receive monthly payments upon retirement.
Its significance lies in its creation of a safety net for vulnerable populations during times of economic hardship and its lasting impact on the relationship between the government and its citizens. It provided a crucial layer of financial security, mitigating the devastating effects of poverty, unemployment, and disability. This legislation fundamentally altered the role of the federal government, establishing a precedent for government intervention in social welfare.
