before social security and medicare
many old people were left in terrible circumstances because they were too old to work
and in the private sector many companies have cheated senior employees out of receving a pension and a healthcare plan
for example if it took 20 years for an employee to get retirement benefits , in the private sector, they would fire the employees in the 19th year
so many old people before social security and medicare had to eat dog and cat food to survive
many faced living with diseases without getting insurance and treatment
some faced homelessness
economy benefits too in that social welfare schemes help the bottom line and profit margins of hospitals, grocery stores and apartment building owners. since social security income once started comes every month...these sectors of the economy receive some of that money too every month in form of rent, grocery, Co pay, etc
much of the social welfare movement for seniors had started when the government refused to pay for the pensions for those who fought in world war one. thousands of veterans came to Washington DC to protest and fight this injustice. this and other labor protests went noticed by theodore and franklin roosevelt.
franklin roosevelt was the president who really started the social welfare programs for seniors over coming the protests of republicans and probably some in his party