Unemployment and the Welfare System The Great Depression was a time during the 1930s where almost everyone had no money and the stock market crashed, widely affecting the middle to upper class. The unemployment rate was increasing rapidly in 1933, causing families to be homeless. President Franklin D. Roosevelt created the Welfare System to help the poor and unemployed, and by 1935, the Welfare System was nationally established. In the 1920s, America was thriving. It was the start of the second Industrial Revolution, making electronic appliances and tools easily accessible. Between 1922 and 1924, millions of families had what once was a luxury; cars, electricity, radio, etc. But after all of the success and growth in America, it was bound to come to an end. Before the Great Depression started, (old) poverty was mostly affecting farmers, one-fourth of the population in southern rural areas consisted of poor sharecroppers and tenant farmers (Marx). New forms of poverty began when the stock market crashed in 1929, and possibly was the first time upper to middle class experienced any type of poverty. Cotton farmers who got land and possessions taken from them migrated to California in false hope that the posters about plentiful jobs were true (Smiley). This change in the so called stable economy made people lose jobs and caused panic. People started to get desperate to find food and jobs, riots and fights broke out constantly all over America. In 1929, the unemployment rates were at 3.2 percent, but grew to almost 25 percent in the course of four years. One major problem during the Great Depression was Unemployment. The unemployment percentages were outrageous during the Great Depression, people starved and lost their homes and farms. By 1933, another 13 million Americans had been thrown out of work (Costly). The local, federal and state governments couldn’t help most of them. Homeless families lived in public parks and shacks. Most of the elderly had no retirement money or personal savings to support themselves with. The very occasional person to save money for retirement usually saw that their hard earned money had been wiped out by the financial crash in 1929 (Costly). In the 1920s, there were, on average, about 553,000 paid civilian employees of the federal government (Smiley). And about 20 years later, there was almost twice the amount at about 954,000.The Welfare System is a system that was created in 1935. Private charities, Government, and public charities were overwhelmed by needy families seeking food, clothing, and shelter (Costly). Franklin Roosevelt created the “New Deal” to give jobless people jobs. National money was given to the states to pay for public works projects, which employed the jobless.(Costly). The state government was still responsible for the people who did not participate in these work projects. On August 18, 1935, Roosevelt signed the Social Security Act (Costly). The Social Security act gave people aged 65 or over a program for retirement. This retirement program was paid for by a payroll tax paid by employers and their workers. The federal government gave one third of the amount of money spent be spent to help needy children under the age of 16, but that money will not go towards their mother. This is how the Welfare System started, and how it was a federal government responsibility. During Roosevelt’s State of Union Address he promised that poor single mothers and needy children will gain benefits.During the 1930s there was a nation wide depression, the Great Depression. Almost nobody had money and food, the amount of unemployed people was ridiculous. President Roosevelt and the government created the welfare system, it created thousands of jobs and helped tremendously.