The shift from extended family to nuclear family made them loose their most reliable source of support. This made a number of people to end up in poverty in absence of their capability to work and without the family members to support them at their old age. The most extensive social support system in the United States was seen to be developed during the American Civil War when in 1862 the federal government created a generous pension program supporting the Union war veterans disabled in battle and for their families. (Social Security).

             This was amended subsequently to incorporate the Union veterans in their old age and to those disabled out of the battle. During the early parts of the 1900s many states in US enacted the worker's compensation laws that entailed the commercial houses to extend benefits to the employees injured on the job or to the families of workers those died as a result of work related accidents or illness. The economic security for all citizens has reduced considerably in the year 1929 with the crash of the stock markets, and the Great Depression which was marked by severe unemployment through out the country. The people were thrown into poverty. It has been severe especially among the oldest members of the population. This gave rise to enactment of social security legislations during the period by many states. .

             During 1934 President Roosevelt formed a Committee on Economic Security to form a program of social support system for all US citizens who were economically affected at the time of Great Depression of the 1930s. This was part of the many radical programs which were created to stimulate the economy. In the initial part of 1935 the Committee on Economic Security forwarded its Economic Security Bill to the Congress of the US. Congress later on altered the name of the bill to that of Social Security and had approved it by the mid of the year 1935 and was signed into law in the August of 1935.