The Federal Government and the States realized the certain risks increasing from the industrialized economy that affected large number workers at that time. Many young people did not realize what life will be when they get old, and there were not assistance available to help them prepare for the later retirement. Therefore, when they got old, they did not have any supporting for their living. Social security was created by the federal government with the idea of forcing workers to saving for their entire retirement. The money was collected from working people in the form of payroll taxes and refunded when they were old. .
The Social Security Act, an act to provide for general welfare by establishing a system of Federal old-age or disability benefits, was drafted in 1934. It passed the congress and became a law under President Franklin D. Roosevelt's signature on August 14, 1935 in his first term of being president. Social Security relied on the idea of social insurance that originally gave benefits to the force workers. The concept of social security is that workers contribute to a central fund, managed by government, and this fund is later used to provide income to the workers when they cannot support themselves at the old age or being laid off and no longer working. The original social security program was designed to provide retirement benefits for only at age 65 and older and only to the covered workers (Dewitt). .
The today social security system is far different from when it was created in 1935. It has changed and added more amendments. The amendment in 1939 that added more categories of benefits: disbursements to the spouse and minor children of a friend worker were a major expansion of the program. This changed the basic individual worker's retirement program to family social insurance system ("Social Security Program"). Until now, the program has added many amendments and legislations, which provided disability or disabilities dependent benefits, extending widows' or widowers' benefits, eliminated student benefits after high school etc.