The act that created a social safety net including retirement benefits, unemployment, and disability insurance is known as what?

• A. The Wagner Act
• B. The Sherman Antitrust Act
• C. The Civil Rights Act
• D. The Social Security Act of 1935

Answer: (D)

The social safety net described—retirement benefits, unemployment insurance, and disability insurance—was created to provide financial security for people during hard times and in old age. The Social Security Act of 1935 established this system, funded by payroll taxes, offering long-term retirement payments, unemployment compensation administered through state programs with federal guidance, and disability benefits. This was a cornerstone of New Deal reforms aimed at countering the economic collapse of the Great Depression and supporting citizens when work and savings were insufficient. The other laws focus on different issues: the Wagner Act protects workers’ rights to organize, the Sherman Antitrust Act targets monopolies and unfair competition, and the Civil Rights Act prohibits discrimination.