What was the significance of the Social Security Act?

The significance of the Social Security Act lies in its fundamental purpose of providing financial security to workers and their families, especially during times of unemployment, disability, or old age. By establishing a social insurance program, the Act aimed to reduce the risk of poverty and destitution that many American families faced during economic downturns. Through the provisions of the Act, eligible individuals could receive benefits that helped sustain their livelihoods when they encountered financial difficulties. This marked a crucial step in the development of the social safety net in the United States, ensuring that individuals who contributed to the workforce would have support available to them in times of need.

The other options do not accurately reflect the core aims of the Social Security Act. The Act did not eliminate insurance or abolish risk and liability; rather, it created a framework to manage these risks through a social safety net. Additionally, while health insurance is an important issue, the Social Security Act did not mandate universal health coverage, as its primary focus was on retirement and disability benefits.