On August 14th, 1935, President Roosevelt signed the Social Security Bill into law. At the time, the Bill was a

plan for social insurance acting as a safeguard against the hazards and vicissitudes of life. (1).

(b) It is common knowledge that the pandemic created a global mis-match on how countries handled safety net spending, (note: safety net programs comprise contribution changes to the Social Security Act of 1935), (2). By some estimates (3) rich economies had increased total direct spending by approx. 13% of GDP on supporting the labor market and households during the pandemic. Do you think this had any impact on the U.S. GDP in 2021 2022 (approx.).

As you prepare your response for section (b) consider specific components of the U.S. GDP and how (if any) each was affected by labor productivity and capital investments. Include two GDP measures that were directly impacted by the change in economic growth. (ref. ch. 32).