Criticism & Court-packing The Second New Deal & The New Deal Coalition

Main Ideas 1.By 1935, the New Deal faced political and legal challenges, as well as growing concern that it was not ending the Depression. 2.Roosevelt asked Congress to pass the Wagner Act & Social Security to build support among workers and older Americans. 3.Roosevelt was easily reelected, but the New Deal lost momentum during his second term due to his court-packing plan and a new recession. 4.The New Deal expanded federal power over the economy and established a social safety net.

Where We Are

After the First New Deal… : Economy had shown only slight improvement New Deal programs had created 2 million jobs 10 million still out of work Nation’s total income half of 1929 levels 1935 Wagner Act & Social Security Act 1936 Court-packing plan creates controversy FDR elected president; commences New Deal 1938 Sit-down strikes force GM to recognize union Fair Labor Standards Act sets min. wage, 40-hour workweek

Criticism from Left & Right Hostility came from both Dems & Repubs Republicans: “New Deal regulates business too tightly!” Criticized FDR’s deficit spending Abandoning balanced budget & borrowing money Democrats: “New Deal does not go far enough!” Wanted more dramatic gov’t intervention Aimed to shift wealth from wealthy to middle-class & poor Americans 1930 Hawley-Smooth Tariff passed 1931 Nat’l Credit Corp. formed Stock Market crashes 1933 Drought begins on Great Plains FDR elected

The Supreme Court Intervenes May 1935: Schechter Poultry Company vs. United States SCOTUS unanimously strikes down National Recovery Administration Court ruled that legislative branch could not delegate powers to executive branch Suggested SCOTUS could strike down the rest of the New Deal 1935 Wagner Act & Social Security Act 1936 Court-packing plan creates controversy FDR elected president; commences New Deal 1938 Sit-down strikes force GM to recognize union Fair Labor Standards Act sets min. wage, 40-hour workweek

Reform for Workers When SCOTUS struck down NRA, it invalidated section of law giving workers right to unionize FDR knew working-class vote was important towards winning reelection Believed unions could help end depression High work wages = more money to spend, thus boosting economy Opponents argue high wages = higher prices and more lay-offs 1935 Wagner Act & Social Security Act 1936 Court-packing plan creates controversy FDR elected president; commences New Deal 1938 Sit-down strikes force GM to recognize union Fair Labor Standards Act sets min. wage, 40-hour workweek

Reform for Workers Despite concern, Wagner Act was passed Guaranteed workers right to organize unions, bargain collectively Led to burst of worker unionization Sit-down strikes emerged until unions were recognized Employees stopped work inside factories & refused to leave 1935 Wagner Act & Social Security Act 1936 Court-packing plan creates controversy FDR elected president; commences New Deal 1938 Sit-down strikes force GM to recognize union Fair Labor Standards Act sets min. wage, 40-hour workweek

Reform for Seniors Social Security Act passed to provide security for older Americans & unemployed Workers pay premiums (i.e. taxes) to federal gov’t over lifetime Receive monthly benefits at retirement (age 65) Unemployment insurance supplied temp. income to those looking for new jobs Established principle that fed gov’t should be responsible for those who, through no fault of their own, are unable to work 1935 Wagner Act & Social Security Act 1936 Court-packing plan creates controversy FDR elected president; commences New Deal 1938 Sit-down strikes force GM to recognize union Fair Labor Standards Act sets min. wage, 40-hour workweek

The Court-Packing Plan Video 1935 Wagner Act & Social Security Act 1936 Court-packing plan creates controversy FDR elected president; commences New Deal 1938 Sit-down strikes force GM to recognize union Fair Labor Standards Act sets min. wage, 40-hour workweek