Dr. Francis Everett Townsend (January 13, 1867–September 1, 1960) was an American

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 physician

Physician

A physician is a health care provider who practices the profession of medicine, which is concerned with promoting, maintaining or restoring human health through the study, diagnosis, and treatment of disease, injury and other physical and mental impairments...

 who was best known for his revolving old-age pension

Pension

In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...

 proposal during the Great Depression

Great Depression

The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

. Known as the "Townsend Plan," this proposal influenced the establishment of the Roosevelt administration

Franklin D. Roosevelt

Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...

's Social Security

Social Security (United States)

In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...

 system. He was born just outside of Fairbury, Illinois, where a post office is memorialized in his honor.

Promoting the plan

Townsend and Clements employed the techniques of real estate salesmanship to gain support for the Townsend Plan. Soon there were organizers in almost every state seeking to create Townsend Plan programs.

Influences

In 1935, partly in response to the continued growth of the Townsend Plan, President Franklin D. Roosevelt

Franklin D. Roosevelt

Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...

 proposed his own old-age policy, which was less generous than Townsend and Clement's proposal. The president's policy included a program for poor older people with matching payments from the federal government, known as Old Age Assistance, and a national old-age annuity program that later was called by all Social Security

Social Security (United States)

In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...

. The president's programs were included in the Social Security Act, which passed in August 1935.

The Townsend Plan continued to agitate for higher benefits after the Social Security Act's passage and reached its peak of support in the months after it was enacted. The Townsend organization could plausibly claim that the benefits were far less than what the American public wanted. The average Old Age Assistance benefit was about $20 per month as late as 1939, and the program known as Social Security was not due to take effect until 1942, despite the fact that opinion polls indicated that the American public thought that $40 per month was fair for the elderly.

Although the Townsend Plan was hampered by Dr. Townsend's personal control over his organization and his vendetta against Roosevelt, by continued political pressure, augmented by other pension organizations, such as California's Ham and Eggs, the Townsend Plan helped to induce amendments to the Social Security Act in 1939. These amendments greatly upgraded old-age benefits for both programs.

Along with other pension organizations that promoted state-level Old Age Assistance programs, the Townsend Plan indirectly spurred the augmentation of Social Security in 1950, when it finally became a more generous program than Old Age Assistance. The Townsend Plan continued to exist in some form until the early 1980s, but had fallen into political insignificance during the 1950s.

Further reading

• Edwin Amenta, When Movements Matter: The Townsend Plan and the Rise of Social Security. Princeton, NJ: Princeton University Press, 2006.