Final answer:
The Social Security Act became law in 1935, providing old-age pensions, unemployment insurance, and aid for families. Funded by employer and employee taxes, it established a social insurance system expanded over the years to include Medicare.
Step-by-step explanation:
The Social Security Act became a law in 1935 as a part of President Franklin D. Roosevelt's New Deal. This landmark federal law was designed to provide financial support to the elderly, the unemployed, and others in need. The Social Security System was a significant piece of social welfare legislation during the Great Depression and aimed to offer a safety net for vulnerable populations. Old-age pensions for retired workers, unemployment insurance, financial compensation for injured workers, and direct aid for impoverished families were key components of the Act. Benefits were funded by taxes paid by employers and employees, establishing a system of social insurance. The Social Security program has undergone various expansions and amendments, including the establishment of Medicare in 1965 to assist the elderly with medical expenses.