Changes

In the very long run, the most important program of 1935, and perhaps the New Deal as a whole, was the [[Social Security Act]], which established a system of retirement pensions for people in the industrial sector (not including farmers or household workers) and unemployment insurance, as well as welfare benefits for poor families and the handicapped. It established the framework for the U.S. welfare system. Roosevelt insisted that it should be funded by payroll taxes rather than from the general fund; he said, "We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program."  With the [[Unified budget Act]] <!-- source --> the Social Security Trust Fund was used to finance the Vietnam War and Great Society programs.  The original payroll withholding was 1% of the workers gross income, with Roosevelt pledging it would never exceed 3%. Today it 6.2% and 12.4% for self-employed workers - one sixth of a workers lifetime earnings when Medicare is factored in.  The withholding is on the first dollar of income with no deductions or exemptions allowed to offset contributions, and a worker was no claim or control over the assets in his account.  If a worker dies before retirement, his estate has no claim on his lifetime contributions.   

In the very long run, the most important program of 1935, and perhaps the New Deal as a whole, was the [[Social Security Act]], which established a system of retirement pensions for people in the industrial sector (not including farmers or household workers) and unemployment insurance, as well as welfare benefits for poor families and the handicapped. It established the framework for the U.S. welfare system. Roosevelt insisted that it should be funded by payroll taxes rather than from the general fund; he said, "We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program."  With the [[Unified budget Act]] <!-- source --> the Social Security Trust Fund was used to finance the Vietnam War and Great Society programs.  The original payroll withholding was 1% of the workers gross income, with Roosevelt pledging it would never exceed 3%. Today it 6.2% and 12.4% for self-employed workers - one sixth of a workers lifetime earnings when Medicare is factored in.  The withholding is on the first dollar of income with no deductions or exemptions allowed to offset contributions, and a worker was no claim or control over the assets in his account.  If a worker dies before retirement, his estate has no claim on his lifetime contributions.   

   

   

Social Security remains by far the single largest program driving the growth of [[National Debt]]; since it is value of [[labor]] that is withheld, the more people [[employment|employed]], the higher wages are paid. the more hours worked including overtime, all is added to the national debt as a promise by the federal government repay at some future date.  And given that it is labor driving the creation of federal debt, the national debt cannot be paid down by labor.  This is referred to as the "structural flaw" in the original Social Security Act.  Further, FDR's assertion that "no damn politician can ever scrap my social security program" would not withstand a Constitutional challenge.  In American people are born free, and no politician can the pledge that some future Congress elected by free citizens can refuse to honor the promises to pay seniors given that benefits are paid out from current workers earnings on a "pay as you go" basis, and are not held in a trust fund.  

Social Security remains by far the single largest program driving the growth of [[National Debt]]; since it is value of [[labor]] that is withheld, the more people [[employment|employed]], the higher wages are paid. the more hours worked including overtime, all is added to the national debt as a promise by the federal government repay at some future date.  And given that it is labor driving the creation of federal debt, the national debt cannot be paid down by labor.  This is referred to as the "structural flaw" in the original Social Security Act.  Further, FDR's assertion that "no damn politician can ever scrap my social security program" would not withstand a Constitutional challenge.  In American people are born free, and no politician can the pledge that some future Congress elected by free citizens can refuse to honor the promises to pay seniors given that benefits are paid out from current workers earnings on a "[[pay as you go]]" basis, and are not held in a trust fund.  

   

   

One of the last New Deal agencies was the [[United States Housing Authority]], created in 1937 with some Republican support to abolish slums.

One of the last New Deal agencies was the [[United States Housing Authority]], created in 1937 with some Republican support to abolish slums.

===Defeat: Court Packing and Executive Reorganization===

===Defeat: Court Packing and Executive Reorganization===