Massachusetts State Life Insurance Practice Exam

During what historical period was Social Security signed into law?

1. World War II

2. The Great Depression

3. The Roaring Twenties

4. The Industrial Revolution

The correct answer is: The Great Depression

The Social Security Act was signed into law during the Great Depression, a time of significant economic turmoil and hardship in the United States. This period, stretching from the stock market crash of 1929 to the late 1930s, was characterized by unprecedented levels of unemployment and poverty, which prompted the government to take action to provide financial assistance to those in need. The Social Security Act of 1935 aimed to help mitigate the economic struggles faced by many Americans by establishing a social insurance program that included old-age insurance, unemployment compensation, and aid to dependent children, among other benefits. This was a key response to the widespread suffering during the Great Depression and marked a pivotal moment in U.S. economic policy. The other historical periods listed do not align with the timeline for the signing of Social Security. For example, World War II followed the Great Depression and did not directly contribute to the establishment of Social Security, while the Roaring Twenties is known for its economic prosperity and does not reflect the same need for social safety nets. The Industrial Revolution occurred much earlier and focused on economic and industrial growth rather than social welfare.