Which federal law created a social insurance program designed to pay retired workers 65 and older and also created aid to families with dependent children?

• A. Social Security Act of 1935
• B. Servicemen's Readjustment Act of 1944
• C. Wagner-Peyser Act of 1933
• D. Economic Opportunity Act of 1964

Answer: (A)

A social insurance program for retirees and aid to families with dependent children was created by the Social Security Act of 1935. This law established Social Security, providing retirement benefits to workers beginning around age 65 and funded by payroll taxes shared by workers and employers. It also created Aid to Dependent Children to support families with dependent children, forming a foundational safety net. These components embody a social insurance approach: workers contribute during their careers and receive benefits in retirement, while families with children receive targeted cash assistance based on need. Other acts served different purposes—deploying veterans’ benefits, setting up a nationwide employment service, or launching antipoverty programs—without creating the nationwide retirement pension and dependent-children program.