Social Security

Central Historical Question:

Which historical account of Social Security is more accurate?
Materials:
● Social Security Movie: https://youtu.be/zPwAmLX0_TU

● Copies of Social Security Historian Interpretations Worksheet

● Copies of Social Security Documents A-C

● Copies of Social Security Guiding Questions and Writing Assignment

Directions:
1. Read the Context.
2. ANAWER NOW the question on the Guiding Questions page: If people are out of work (either retired or
disabled or otherwise unable to find work), should they receive money from the government (which
comes from tax money)? Consider both sides of the argument.
3. Watch the following movie: https://youtu.be/zPwAmLX0_TU and then on the Guiding Question page
answer the corresponding questions.
4. Read and complete the Historian Interpretations Worksheet.
5. Read Social Security Document A and answer the corresponding Guiding Questions.
6. Read Social Security Document B and answer the corresponding Guiding Questions.
7. Read Social Security Document C and answer the corresponding Guiding Questions.
8. Write a paragraph answering the question: Which historical account of Social Security is more
accurate, Degler’s or Bernstein’s?

Context:

Throughout the 1920s, the U.S. economy expanded rapidly, and the nation’s total wealth more than doubled
between 1920 and 1929, a period dubbed “the Roaring Twenties.” The stock market, centered at the New York
Stock Exchange on Wall Street in New York City, was the scene of reckless speculation, where everyone from
millionaire tycoons to cooks and janitors poured their savings into stocks. As a result, the stock market
underwent rapid expansion, reaching its peak in August 1929. By then, production had already declined and
unemployment had risen, leaving stock prices much higher than their actual value. Additionally, wages at that
time were low, consumer debt was proliferating, the agricultural sector of the economy was struggling due to
drought and falling food prices and banks had an excess of large loans that could not be liquidated. The
American economy entered a mild recession during the summer of 1929, as consumer spending slowed and
unsold goods began to pile up, which in turn slowed factory production. Nonetheless, stock prices continued to
rise, and by the fall of that year had reached stratospheric levels that could not be justified by expected future
earnings. On October 24, 1929, as nervous investors began selling overpriced shares en masse, the stock
market crash that some had feared happened at last. A record 12.9 million shares were traded that day, known
as “Black Thursday.” Five days later, on October 29 or “Black Tuesday,” some 16 million shares were traded
after another wave of panic swept Wall Street. Millions of shares ended up worthless, and those investors who
had bought stocks “on margin” (with borrowed money) were wiped out completely. The Depression worsened
between 1928 and 1932. The Dust Bowl caused severe damage to the crops of the Great Plains and many
farmers were left destitute. FDR was elected president in 1932 and promised to help people. During his First
100 Days he passed a great deal of legislation that ended Prohibition and enacted the New Deal. Many people
who were active in the Progressive Movement encouraged Roosevelt to use his power and government money
to help people. The New Deal policies were opposed by members of the business community who believed in
laissez-faire. Today, we’re going to look at some evidence and decide which historians have stronger
arguments and answer the Central Historical Question: Which historical account of Social Security is more
accurate?
 Historian Interpretations Worksheet
Historian Interpretation 1: Carl Degler
Historian Carl Degler argued that the New Deal was
revolutionary. He believed that the New Deal represented a
drastic change in how Americans viewed government and its
role in the economy. Rather than expecting economic
troubles to be solved by market forces (a faith in "laissez-
faire economics"), Americans began to expect the
government to act in times of economic trouble and intervene
to help make things better.
Degler saw Social Security as a piece of this change,
signaling that Americans viewed the government as
responsible for ensuring that older Americans would live
decent lives. This was a shift from thinking that this
responsibility lay only with individuals and families. The
American public was ready for a change after experiencing
the severe conditions during the Great Depression, when
banks were failing, industries were faltering, and people were
unemployed. Degler argued that the New Deal constituted a
permanent shift in the American public’s expectations: they
now wanted the government to be an active player in the
economy.
Carl N. Degler, "The Third American Revolution," in Out of
Our Past: The Forces that Shaped Modern America,1959.
"laissez-faire economics": The Government should play as
small a role as possible in economic affairs.
Summarize Degler’s argument in your own words:
Degler argued that the New Deal marked a significant
change in the American public's expectations of the
Historian Interpretation 2: Bart Bernstein
Historian Barton Bernstein, writing in the late 1960’s, argued that the
New Deal was no revolution, and that the changes suggested by
Degler and others had been exaggerated. The New Deal was a
narrow program of limited reform that excluded millions of Americans.
Bernstein saw the New Deal as fundamentally a conservative program
partly motivated by a fear of more radical ideas (like those proposed
by Huey Long).
Specifically, Bernstein saw the Social Security Act as more symbol
than substance. Workers had to contribute to their old
age pensions and could not depend on government contributions:
thus, it was a limited kind of aid. More than one out of every five
workers were excluded from the pension plan, including those who
worked on farms and as domestic help, and this workforce was
disproportionately black or female. Bernstein argued that while the
New Deal reduced suffering, it did not deserve the praise for
revolutionizing America that others lavished upon it.
Barton Bernstein, "The Conservative Achievements of Liberal
Reform," in Towards a New Past, 1968.
radical ideas: Labeled a socialist by both political parties, Long
bordered on advocating a communist like America.
revolutionizing: To change something radically (completely or
extremely) or fundamentally (basic or essential) way.
Summarize Bernstein’s argument in your own words:
Bernstein argued that the New Deal was not a revolutionary
program, as some historians had suggested, but rather a
government's role in the economy. Before the New
Deal, Americans generally believed in laissez-faire
economics, which meant that they expected economic
troubles to be solved by market forces without
government intervention. However, the Great
Depression led to a shift in the American public's
expectations, and they began to look to the government
to act and intervene during economic downturns.
Social Security was seen as a key component of this
change, as it showed that Americans expected the
government to take responsibility for ensuring that
older Americans could live decent lives. According to
Degler, the New Deal constituted a permanent shift in
the American public's expectations, and they now
wanted the government to be an active player in the
economy.
narrow and limited set of reforms. He saw the New Deal as
being motivated by a fear of more radical ideas, such as those
proposed by Huey Long. Bernstein believed that the Social
Security Act, which has been praised by some historians as a
key part of the New Deal's revolutionary changes, was actually
more symbolic than substantive. He pointed out that workers
had to contribute to their pensions and could not rely on
government contributions alone, and that many workers,
particularly those in marginalized groups such as black or
female workers, were excluded from the program. Bernstein
acknowledged that the New Deal did reduce suffering, but
argued that it did not deserve the level of praise for
revolutionizing America that some historians had given it.
 Document A: FDR (Modified)

President Franklin D. Roosevelt gave this speech on August 14, 1935 when he signed
the Social Security Act.
__________________________________________________________________________________________________

Today a long-held hope is largely fulfilled. The civilization of the past 100 years, with
its startling industrial changes, has made life insecure. Young people have come to
wonder what would happen to them in old age. The man with a job has wondered how
long the job would last.

This social security measure gives some protection to 30 million of our citizens who will
receive direct benefits through unemployment compensation, through old-age
pensions, and through increased services for the protection of children and the
prevention of ill health.

We can never insure 100 percent of the population against 100 percent of the ups and
downs of life, but we have tried to pass a law which will give some protection to the
average citizen and to his family against the loss of a job and against poverty-ridden
old age.

This law, too, represents a cornerstone in a structure intended to lessen the force of
possible future depressions. It will act as a protection to future Administrations against
the necessity of going deeply into debt to help the needy. It is, in short, a law that will
take care of human needs and at the same time provide the United States a sound
economic structure.

Vocabulary
pension: a regular payment made to someone in retirement from a fund that they or their employer
has contributed to throughout their working life
cornerstone: a stone that lies at the foundation of a building

Source: August 14, 1935, excerpt from President Franklin D. Roosevelt’s speech,
Washington, D.C.

Document B: NAACP (Modified)

President Roosevelt sent his Social Security bill, named the “Economic Security Act,”
to Congress in January 1935. Congress held committee hearings on the bill. Charles
H. Houston, a representative of the National Association for the Advancement of
Colored People (NAACP), a group dedicated to advancing the rights of African
Americans, testified before Congress about how the bill excluded certain groups of
people.
_________________________________________________________________________________________________

Mr. Houston: The point that I am making is that in order for a person to qualify for
Social Security, taxes must be paid on behalf of this person before he turns 60.

Now, for the benefit of Negroes, I want to ask, who would be left out by that rule?

First, and very serious, Negro sharecroppers and cash tenants would be left out. We all
know that the Negro sharecropper and the Negro cash farm tenant are at the bottom of
the economic scale. He is not employed. There is no relation of master and servant by
which he gets wages on which a tax could be collected. Therefore, this population is
left out from the old-age annuity, and that represents approximately 490,000 Negroes.

Next, domestic servants are excluded from the act because the system of employing
domestic servants is so loose.

In addition to that, this old-age annuity does not provide for unemployed persons. I do
not need to argue to the committee that Negroes have suffered from unemployment
more than any other class of the community.

Vocabulary
annuity: fixed amount of money paid to someone each year

Source: Excerpt from the testimony of Charles H. Houston, representing the NAACP,
to the House Ways and Means Committee on the Economic Security bill, February 1,
1935. Washington, D.C.

Document C: Stealing (Modified)

Americans sent thousands of letters to the White House during FDR’s presidency and
many were addressed to Eleanor Roosevelt, the First Lady. On average, more than
5,000 letters arrived daily. This letter refers to the “forgotten man,” the title of a radio
address that FDR gave on April 17, 1932. The “forgotten man” became a phrase
adopted by many Americans.
_________________________________________________________________________________________________

no address Jan 18, 1937

Dear Mrs. Roosevelt,

I was simply astounded to think that anyone could be nitwit enough to wish to be
included in the so-called social security act if they could possibly avoid it. Call it by any
name you wish, but it is, in my opinion (and that of many people I know), nothing but
downright stealing.

Personally, I had my savings invested so that I would have enough money for old age.
Now thanks to the President, I cannot be sure of anything, being a stockholder. After
business has survived his merciless attacks (if it does), insurance will probably be no
good either.

Believe me, the only thing we want from the president is for him to balance the budget
and reduce taxes.

I am not an “economic royalist,” just an ordinary white-collar worker at $1600 per year.
Please show this to the president and ask him to remember the wishes of the forgotten
man, that is, the one who dared to vote against him. We expect to be tramped on but
we do wish the stepping would be a little less hard.

Security at the price of freedom is never desired by intelligent people.

M.A. [female]

Source: Excerpt from a letter sent to Eleanor Roosevelt by an anonymous woman,

January 18, 1937.
Guiding Questions Name__________

ANSWER NOW: If people are out of work (either retired or disabled or otherwise unable to find
work), should they receive money from the government (which comes from tax money)? Consider
both sides of the argument. Yes, people who are out of work due to retirement, disability, or inability to
find work should receive financial assistance from the government. It is the responsibility of society
to provide for its members, particularly those who are vulnerable or marginalized. Financial
assistance can help to alleviate poverty and reduce social inequality. Furthermore, during times of
economic hardship, providing financial assistance can help to stimulate the economy by putting more
money into circulation.

Movie

1. What is Social Security?

Social Security is a government program in the United States that provides financial assistance to
retired, disabled, or otherwise vulnerable individuals.
2. Where does money for social security come from?
The money for Social Security comes from payroll taxes paid by employees and employers, as well as
from taxes on Social Security benefits and income earned on Social Security trust funds.
3. Where did Long think the money should come from?
Huey Long proposed a wealth redistribution plan, where high taxes would be imposed on the wealthy
and corporations, and the revenue generated would be used to provide a guaranteed minimum
income for all Americans.
4. Where did Townshend think the money should come from?
Francis Townsend proposed a national pension plan where the federal government would provide a
monthly pension of $200 to all citizens over the age of 60, with the funding coming from a new
national sales tax.

Document A: FDR

Sourcing Who gave this speech and when? Who is the intended audience? How might that influence the
content and tone of the speech?
President Franklin D. Roosevelt gave this speech on August 14, 1935 when he signed the Social
Security Act, and the intended audience was the American people, specifically those who would
benefit from the new law.

Close Reading What four programs are included in the Social Security bill? How does Social Security
represent FDR’s program of “relief, recovery, and reform”? For each of the three words, write one quote or
example that illustrates connections. he four programs included in the Social Security bill were
unemployment compensation, old-age pensions, increased services for the protection of children,
and the prevention of ill health. Social Security represents FDR’s program of “relief, recovery, and
reform” as it provides relief to those in need through unemployment compensation and old-age
pensions, it contributes to economic recovery by lessening the force of future depressions, and it
represents reform by establishing a new government-funded safety net for citizens. Relief: “This
social security measure gives some protection to 30 million of our citizens who will receive direct
benefits through unemployment compensation, through old-age pensions, and through increased
services for the protection of children and the prevention of ill health.”

Recovery: “This law…will act as a protection to future Administrations against the necessity of
going deeply into debt to help the needy. It is, in short, a law that will take care of human needs and
at the same time provide the United States a sound economic structure.”
 Reform: “We can never insure 100 percent of the population against 100 percent of the ups and
downs of life, but we have tried to pass a law which will give some protection to the average
citizen and to his family against the loss of a job and against poverty-ridden old age.”

Document B: NAACP

1. Close Reading What four groups does Houston say are excluded from Social Security?
Houston says that sharecroppers, cash tenants, domestic servants, and unemployed persons are
excluded from Social Security.

2. Corroborating What would NAACP representative Houston say about FDR’s speech (Document A)?
Select a line from Document A: FDR and explain how Houston might disagree.
NAACP representative Houston might disagree with FDR's statement in Document A that Social
Security would provide protection to 30 million citizens, as he argues that certain groups, such as
sharecroppers and cash tenants, are excluded from the benefits and left out of the program
Document C: Stealing

1. Sourcing What does the author tell us about herself? What kind of person do you think she is based on
the information in this letter?
The author tells us that she is an anonymous woman who works as a white-collar worker and earns
$1600 per year. Based on the information in this letter, she seems to be a person who is dissatisfied
with the New Deal policies and is worried about the impact they will have on her financial security.
2. Close Reading What was M.A. counting on to support her in old age? And why has she lost faith that this
will support her?
M.A. was counting on her savings, which were invested, to support her in old age. She has lost faith
that this will support her because she believes that the social security act is nothing but stealing and
that thanks to the President, she cannot be sure of anything, being a stockholder. She is worried that
even insurance will probably be no good either.
3. Contextualizing How does this author generally feel about the New Deal? How does her phrase “security
at the price of freedom” capture those feelings?
This author generally feels negative about the New Deal. Her phrase “security at the price of
freedom” captures her feelings because she believes that the government is taking away her freedom
to choose how she wants to save for her old age and is forcing her to rely on social security, which
she considers stealing. She thinks that the government is offering security but at the cost of
individual freedom.

Conclusion:

Both the NAACP representative in Document B and the woman in Document C were unhappy with
Social Security. How did their concerns differ?
The concerns of the NAACP representative in Document B and the woman in Document C differ in
terms of their reasons for opposing Social Security. The NAACP representative argues that certain
groups of people, particularly African Americans, are excluded from Social Security, while the woman
in Document C believes that Social Security is "nothing but downright stealing" and opposes it on the
grounds of personal freedom and economic principles.

How would FDR have responded to the complaints in Document B and C?

Document B supports Bernstein's argument that Social Security was not a perfect program and had
limitations that excluded certain groups of people, particularly African Americans. Document C
supports Degler's argument that there were concerns about Social Security among some Americans
who saw it as a threat to personal freedom and economic principles.

Let’s go back to the historians. Do these three documents support Degler or Bernstein? Explain.
Which historian do you agree with? Why?
Document B reveals the perspective of the National Association for the Advancement of Colored
People (NAACP) regarding Social Security. The NAACP representative, Charles H. Houston, testified
before Congress in 1935 and argued that the Social Security bill excluded several groups of people,
including sharecroppers, cash tenants, domestic servants, and the unemployed. Houston contended
that these groups were predominantly African American and therefore were being unfairly targeted by
the legislation. Houston's testimony sheds light on the unequal impact of Social Security and the
struggles faced by marginalized groups in America during the Great Depression era.

Using information from the movie and all three documents, write one paragraph of 75 words or more in
response to the following question: Which historical account of Social Security is more accurate,
Degler or Bernstein?

Bernstein's account of Social Security is more accurate than Degler's because it takes into account
the diverse experiences and opinions of Americans during the New Deal. Document A, FDR's speech,
shows that he viewed Social Security as a way to prevent poverty and provide a safety net for all
Americans, but Document B, the testimony of the NAACP representative, shows that some groups
were excluded from Social Security, like sharecroppers and domestic servants. Document C, a letter
from a woman to Eleanor Roosevelt, shows that some Americans believed Social Security was
stealing from them, and they wanted the government to reduce taxes instead.

Bernstein's account also considers the broader social, economic, and political context of the New
Deal, including the opposition to FDR's policies from some Americans, as well as the compromises
made to pass legislation. Document B illustrates this point, as Houston from the NAACP testified
before Congress about the exclusion of African Americans from Social Security, and the
compromises made to pass the Economic Security Act. Additionally, Document C shows the
opposition to FDR's policies from some Americans, who believed that Social Security was a threat to
their economic freedom.

In contrast, Degler's account presents a limited view of Social Security, as it focuses only on the intent
of policymakers and ignores the experiences and opinions of Americans during the New Deal.
Degler's account also presents Social Security as a product of the Progressive Era, rather than as a
response to the economic and social crises of the Great Depression. Overall, Bernstein's account is
more accurate because it reflects the diverse and complex experiences and opinions of Americans
during the New Deal, and takes into account the broader social, economic, and political context of the
time.