T HE S ECOND N EW D EAL 13.2

E XTENDING S OCIAL AND E CONOMIC R EFORM In his fireside chats FDR told the nation he would “promote the general welfare” using gov’t assistance. The Second New Deal: biggest goal = unemployment also… Aid for – Elderly Poor Unemployed Farmers Workers

W ORKS P ROGRESS A DMINISTRATION (1935) The WPA: Create as many jobs as possible as quickly as possible! B/w : WPA spent $11 billion, employed<8 million workers Built 850 airports, 651,000 miles of roads, 125,000 public buildings Women workers in sewing groups made < 300 million garments

W ORKS P ROGRESS A DMINISTRATION (1935) Federal Writers’ Project – a project of the WPA, paid artists, writers, and performers to create works of cultural importance including John Steinbeck’s work, The Grapes of Wrath, the WPA Slave Narratives, and 1000s of murals on public buildings. ANALYSIS: Growing national debt was approved by Keynesian economists Pump priming – ppl working on public projects = money in hands of consumers = buying more goods = more $ in the economy

S OCIAL S ECURITY E ASES THE B URDEN ON O LDER A MERICANS Many elderly lost everything when the Great Dep. hit and no way to work or many $ bc age Social Security Act created National pension plan Unemployment injury insurance Disability insurance Single-parent family aid BUT no aid for farmworkers many of whom were African Americans

S OME A MERICAN H AVE C ONCERNS W / SS Feared by opponents as "creeping socialism"- this act typifies the WELFARE STATE Problem: Took some $ out of circulation (payroll deductions) at a time when purchasing power was already low It only covered the unemployed, not poor but employed.

M ORE A ID G OES TO F ARMERS REA – Rural Electricity Administration Brought electricity to farmers 10% had electricity before the G.D., 80% after REA Price supports in the form of subsidies Critics attacked for the imposition on the free mkt Benefited primarily the large farmers

E LECTION OF 1936 FDR won easily (v Repub. Alf Landon - Kansas governor) This victory gave FDR a mandate to continue his New Deal policies Democrats gained in both houses of Congress Democrats win 26 of 33 races for governor in States African-Am. Switch to Democratic Party

E LECTION OF 1936

L ABOR U NIONS F IND A N EW E NERGY Upsurge in union activity  why? National Labor Relations Act (Wagner Act)- Unions and collective bargaining It outlawed BLACKLISTS & other anti-union practices Established the NLRB (What impact on unions?) Fair Labor Standards Act Minimum wage, maximum workweek 44 hours Outlawed child labor CIO – new union for industrial workers Founded by John L. Lewis Used sit-down strikes

C HALLENGES TO THE N EW D EAL The Supreme Court struck down the NIRA (National Industrial Recovery Act) in Infringed upon states’ rights Sup. Ct. struck down the AAA in 1936 – should be left in local hands

FDR P ROPOSES “P ACKING ” THE C OURT FDR proposed that Congress enlarge the Supreme Court to “reduce their workload” Really to appoint judges more favorable to FDR’s agenda  “ court packing ” The Court Reorganization Plan was heavily criticized by both Democrats and Republicans as a power grab by FDR and he abandoned the plan.

A N EW D OWNTURN S PURS C ONSERVATIVE G AINS