Senior Living History: 1930 - 1939

State Assistance Programs Gave Little to Seniors

In 1928, just before the start of the Great Depression, only six states and territories had old-age assistance laws. As the Depression deepened in 1934, 28 states and two territories (Alaska and Hawaii) had old-age assistance programs. Only about 3 percent of older adults were actually receiving benefits under the state plans, however, and the benefit amount was only 65 cents a day.1

The plans were quite limited and had severe restrictions, and they were inconsistent from state to state. In 1935, fewer than 200,000 people were covered under state old-age assistance plans.2

The Great Depression Changed American Life

During the 1930s, family life and working conditions changed drastically. Unemployment surged, depleting Americans’ savings. The U.S. Bureau of Labor Statistics reports that the national unemployment rate peaked at approximately 25 percent in 1933.3 According to the National Bureau of Economic Research, some industrialized cities experienced even higher rates of unemployment, ranging from 30 percent to 40 percent.4

President Franklin D. Roosevelt initiated the Federal Emergency Relief Administration (FERA) after his election in 1932. FERA (1933–1935) offered immediate, temporary relief during the crisis, providing states with federal funds to distribute for direct relief in the form of cash payments, food and necessities. FERA was created as an emergency measure for unemployed and destitute Americans of all ages, not solely older adults.

Roosevelt’s Committee on Economic Security estimated that by the end of 1934 about 750,000 single people and 4.2 million families received some sort of emergency relief. Including all the members of the affected families, nearly 19 million people — 15 percent of the total U.S. population at the time — depended on FERA programs.5

Hard Times Drove Families Apart

Many families couldn’t support all their members and often split up. By 1940, over 1.5 million married couples were living apart.6 Unemployed workers crossed the country to search for jobs, further separating families. Many children went to orphanages.

The financial stress hit seniors particularly hard. Those who were retired or close to it watched a lifetime of savings vanish. Unable to work or secure jobs, they could not rebuild their financial security. With limited resources, they became dependent on their families, who were struggling themselves to make ends meet. If families couldn’t support them, seniors were likely to end up in the poorhouse or dependent on charity.

Society Expected Federal Government to Intervene

Local governments couldn’t care for the exploding number of poor people on their welfare rolls and turned to the states to help meet their obligations. The states, in turn, began to look to the federal government for help.

The Committee on Economic Security reported to Roosevelt in 1935 that one-third to one-half of the country’s 7.5 million people ages 65 or older were dependent on either public assistance or help from their families and friends.7 Only a relatively small percentage of that group was receiving any help from the government.8

By 1935, a majority of legislators agreed that a federal program for old-age pensions and welfare was required. It would help individuals in need, stimulate the depressed economy by getting cash into the hands of citizens, and “retire” older workers without impoverishing them, making their jobs available to younger people.

Social Security Became a Landmark Piece of Legislation

Roosevelt’s New Deal introduced programs such as Social Security in 1935, providing the first federal old-age pension system. The Social Security Act also established grants to states for old-age assistance, maternal and child welfare, public health, and aid to the blind. Almshouses (“poorhouses”) had remained the primary institutional care option for older adults until Social Security began reducing dependency.

Social Security was designed as a lasting program that workers paid into during their working years so they could draw on the benefits to support themselves in retirement. Although FERA addressed the immediate crisis and needs of all ages through direct relief, Social Security established a long-term system to address the financial security of older adults using an insurance model.

As a permanent, contributory insurance system for retirement, Social Security provides ongoing monthly payments to older Americans funded by payroll taxes. Thus, seniors can rely on a regular income. The government does not pay for it, since it’s funded by contributions from both workers and employers.

Federal Old-Age Assistance

Title I of the 1935 Social Security Act created a program called Old Age Assistance (OAA). The OAA gave cash payments to older Americans in need, regardless of their work history. The program later spawned the Medicaid program, which has become the primary funding source for long-term care.10

Under OAA, for every dollar a state spent helping a senior (up to $30 per month), the federal government contributed an equal amount. The arrangement provided federal financial support while allowing states to design and run their own assistance programs.

States ran their OAA programs differently. Some denied help to older adults who had families “supposed” to support them, while others required seniors to give up all possessions before receiving aid. The variations existed because the law was designed with minimal federal requirements in order to gain state support.12

The Health of Seniors During the Depression

The main causes of death in the early 1930s were heart disease (it remains a leading cause of death for seniors), cancer, pneumonia, and infections and parasitic disorders. The last group included influenza, tuberculosis and syphilis. Polio was also a very serious problem at the time.13

Although not a direct cause of death, the economic hardship of the Great Depression led to widespread hunger and malnutrition. It weakened people’s immune systems and they became more susceptible to diseases. Many families struggled to afford medical care, causing delayed treatment and poorer health. Mortality from suicide also peaked with unemployment during 1921, 1932 and 1938.14

The Growth Of Nursing Homes

The Social Security Act’s prohibition on providing payments to residents of public institutions led to a rapid decline in poorhouse populations after 1935. As older Americans gained access to monthly cash payments through OAA, they could afford to pay for private care arrangements, which spurred growth in the nursing home industry. The new benefits stimulated the growth of for-profit nursing homes.

“Mom and pop” operators began boarding older customers in spare rooms of private homes, some of which were run by unemployed nurses who provided basic care along with room and board — giving rise to the term “nursing home.” These and other for-profit facilities multiplied rapidly because OAA recipients could pay cash during a time when real money was scarce, making them attractive customers. The nursing home industry provided homeowners a way to generate income using their only asset — their home — during difficult economic times.

Hospitals, meanwhile, continued to develop primarily under government and nonprofit sponsorship. Most of the country’s 6,400 hospitals in 1935 were either charitable or government institutions.

American Lifestyle in the 1930s

Despite the hardships the Great Depression wrought, Americans found ways to enjoy life through inexpensive entertainment. Radio became the centerpiece of home life; 28 million homes had a radio by 1939. Families gathered for popular programs such as “The Lone Ranger” and “The Shadow,” as well as Roosevelt’s fireside chats.16

Movies also offered an escape from difficult times, with low ticket prices averaging 25 cents. Gangster films, musicals, screwball comedies, westerns and horror films were popular. Classic films such as “The Wizard of Oz,” “Tom Sawyer” and “Gone With the Wind” premiered during this era. Swing music was the big thing, and artists such as Duke Ellington, Glenn Miller and Benny Goodman became national stars.17

During daily life, people emphasized thriftiness and resourcefulness as families tried to adapt to limited means. Farm women repurposed flour and grain sacks to make curtains and dresses. Community activities included going to watch dance marathons, setting up soap box derbies for kids and playing the board game Monopoly, which became popular during the 1930s.18

The Federal Art Project, a New Deal project that was part of the Works Progress Administration during the 1930s, provided employment for artists. The program helped create art in the form of murals, paintings and sculptures for public spaces. It supported over 10,000 artists creating public works in post offices, schools, libraries and public buildings.19