The change in the economy that made outside employers the main source of family income altered this dynamic.The worker was left at the mercy of a system in which efficiency was prized.Those considered less efficient were no longer needed.There was also erosion of the family unit as a place to live and die with multiple generations under one roof.This change began to take place in large measure after the Civil War and accompanied the growth of the nation, the rise of the financial markets and the development of the large corporations and trusts.This growth was quickly followed by the growth of, or attempts to establish, unions.While unionization did lead to some worker benefits, the safety net provided was in most cases woefully short of the overall security that existed in the pre-industrialized family unit era. Social Security legislation arose out of the early days of the New Deal and was part of a program designed to address the problems that the country was facing in the “Great Depression”.When the world fell into depression in the early 1930’s there was no safety net in place in the U.S.Wealth within the country had evaporated as evidenced by the change in value of the New York Stock Exchange and bonds outstanding.These had gone from $89.7 billion to $26.7 billion and $49.3 billion to $36.9 billion respectively from September 1, 1929 to June of 1932.The Social Security system was viewed by its creators as providing a key component for the retirement years.
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