Social Security Act of 1935
Social Security Act of 1935 established old age insurance for much of the over 60 population. Half of the funds are provided by a payroll tax on workers and half is paid by employers. The act also provided federal unemployment insurance, welfare aid to low-income mothers (later amended to families), funding for individual state assistance to elderly individuals, and various other social insurance provisions.
Cry Wolf Quotes
The Social Security Bill will add 6 percent to the labor cost of doing business. No one with the slightest familiarity with economic principals can believe that the total cost of this will be born solely by employers; it must be shared by labor and consumers.
The actual fact will be, in almost every case, that the whole tax will be borne either by the employe [sic] or by the consumer through higher prices. That is the history of all such taxes. This is because the tax is imposed in such a way that, if the employer is to stay in business, he must shift the tax to some one else.
We are creating an enormous bureaucracy to take care of problem the magnitude and significance of which we really do not understand…. This is a problem so far-reaching, so important, and so long in duration that it should not be as an emergency measure, without the opportunity for review and consideration, so as to minimize the inevitable tinkering that will come.
American Medical Association [AMA] was strongly opposed to any scheme for group practice and to health insurance ... because they are un-American.
