Final answer:
The U.S. government began collecting Social Security in 1935 as part of Roosevelt's New Deal, with the first benefits paid in 1940. The system has since expanded and faced financial challenges, prompting reforms to ensure its sustainability.
Step-by-step explanation:
Beginnings of Social Security in the U.S.
The U.S. government began collecting Social Security taxes and subsequently offering benefits as part of President Roosevelt's New Deal in the 1930s, specifically starting with the enactment of the Social Security Act in 1935. The first payments under this act were set to begin in 1940, financed by a dedicated fund from payroll taxes paid jointly by employers and employees. This system was established to provide support to the elderly, the temporarily unemployed, and the permanently disabled, and was designed to be self-sustaining, intended to provide a guaranteed minimum level of security as a foundation for individuals' retirement funds.
Expansion and Changes Over Time
Over time, Social Security has been expanded to cover not just retirees but also survivors including widows, dependent children, and orphans, and was further extended to include disabled Americans in 1956. Benefit levels were eventually linked to the consumer price index in 1972. Despite its expansions and modifications, Social Security has periodically faced financial challenges, prompting reforms such as those in the 1980s and discussions about future sustainability.
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