The Second New Deal

The Second New Deal Roosevelt’s first two years were largely focused on one of the three R’s: recovery Democratic victories in 1934 mid-term elections gave the president even more support to pass a second round of laws and programs Focused more on the other two R’s: relief and reform

Relief Programs: The WPA and the RA Works Progress Administration Spent billions of dollars between 1938-1940 to provide people with jobs Employed 3.4 million men and women put to work constructing new bridges, roads, airports, and public buildings Hired artists, writers, actors, and photographers to paint, write, and perform Resettlement Administration Provided loans to sharecroppers, tenants, and small farmers Established federal camps where migrant workers could find decent housing

Reform Programs: The Wagner Act (1935) Roosevelt believed industrial workers and farmers needed more govt. help than members of the business/privileged classes The Wagner Act guaranteed a worker’s right to join a union and a union’s right to collective bargaining Outlawed business practices that were unfair to labor The National Labor Relations Board (NLRB) was empowered to enforce the law, make sure workers’ rights were protected

Reform Programs: The REA and Federal Taxes Rural Electrification Administration Provided loans for electrical cooperatives to supply power in rural areas Federal Taxes Revenue Act of 1935 greatly increased taxes on the incomes of the wealthy Also increased taxes on large gifts from parent to child and on capital gains (profits from the sale of stocks or other properties)

The Social Security Act Created a federal insurance program based on the automatic collection of payments from people throughout their entire working career Social Security trust fund would be used to make monthly payments to retired persons over 65 Unemployed, disabled, and dependent mothers and children could also qualify to receive Social Security

The Election of 1936 FDR was enormously popular Except for among businesses and the very wealthy Alf Landon was a progressive-minded Republican who criticized the Democrats for spending too much Although he generally accepted most of the New Deal legislation Roosevelt won by a landslide Every state except Maine and Vermont; 60% of the popular vote Democrats had a majority in almost every region in the country now

Opponents of the New Deal: Liberals and Conservatives Some extreme liberals attacked the New Deal saying it did more for businesses than it helped out the unemployed and working poor Accused FDR of failing to address the needs of minorities, women, and the elderly Most conservatives charged that the New Deal gave the federal government too much power Argued some programs bordered on socialism, communism Business leaders alarmed by three things: Increased regulations Pro-union legislation of the second New Deal Financing programs by using borrowed money (deficit financing)

Opponents of the New Deal: Demagogues Father Charles E. Coughlin was a Catholic priest who made weekly radio broadcasts Founded an organization that called for issuing inflated currency and nationalizing all banks His attacks on the New Deal became increasingly anti-Semitic and Fascist until his superiors in the Church ordered him to stop his broadcasts

Opponents of the New Deal: Demagogues Dr. Francis E. Townsend became an instant hero among the elderly Proposed a 2% federal sales tax be used to create a special fund from which every retired person would receive $200 a month By spending this $200 quickly, Townsend argued the recipients could stimulate the economy and help end the Depression The popularity of the Townsend Plan inspired Roosevelt’s idea for what would become the Social Security system

Opponents of the New Deal: Demagogues Roosevelt’s greatest political competition came from “Kingfish” Senator Huey Long Long became nationally popular when he proposed the “Share Our Wealth” program Promised a minimum yearly income of $5,000 for every American family, to be paid for by taxing the wealthy Long challenged Roosevelt’s leadership in the Democratic party when he announced his candidacy for president in the 1936 election He was killed by an assassin before he could run

Opponents of the New Deal: The Supreme Court The conservative decisions of the Supreme Court proved to be the biggest challenge to FDR’s New Deal legislation FDR’s reelection in 1936 convinced him the American public was on his side Proposed a judicial-reorganization bill in 1937 This bill proposed the president could appoint new justices to the Supreme Court for every justice who was older than 70 and a half years In effect, would’ve allowed Roosevelt to add up to 6 more judges to the Court (all who would’ve presumably been liberal)

Opponents of the New Deal: The Supreme Court Both Republicans and Democrats were outraged over the judicial- reorganization bill Saw it as an attempt to tamper with the system of checks and balances Roosevelt did not back down from his proposal, and neither did Congress The first major bill FDR proposed that was defeated decisively by Congress Even most Democrats refused to support FDR’s “court-packing” bill

Opponents of the New Deal: The Supreme Court Ironically, the Supreme Court was already backing off its resistance to some of FDR’s programs 1937: Upheld the constitutionality of several major New Deal laws Several justices retired during Roosevelt’s second term Enabled him to appoint new justices who shared his views without having to “pack” the court

The Rise of Unions New Deal measures (NRA and Wagner Act especially) caused union membership to shoot upward Less than 3 million in early 1930s up to 10 million by 1941 As unions grew bigger, tension and conflicts occurred between rival unions The many different unions that made up the American Federation of Labor (AFL) were dominated by skilled white males and were organized according to crafts Some unions in the AFL wanted membership to be extended to all workers regardless of race, sex, and even skill

The Rise of Unions: The CIO Industrial unions formed the Committee of Industrial Organizations The AFL suspended the CIO in 1936 Renamed the Congress of Industrial Organizations, the CIO broke away from the AFL and became its chief rival The CIO concentrated on organizing unskilled workers in the automobile, steel, and textile industries

Fair Labor Standards Act Some companies still resisted union demands, and major strikes still occurred in the automobile and steel industries The Fair Labor Standards Act of 1938 provided for the following: Minimum wage fixed at 40 cents/hour Maximum standard work week of 40 hours, with overtime pay Child-labor restrictions on hiring people under 16 This was the final political victory for labor in the 1930s and also the last major reform of the New Deal

? What were two major relief programs passed during the Second New Deal? What was the significance of the Wagner Act? What did the Social Security act provide for? What did conservatives criticize about the New Deal? What things were conservative business leaders alarmed about over the New Deal? How did Dr. Francis E. Townsend affect New Deal legislation? Who was FDR’s biggest political threat? Why? What was the purpose of FDR’s judicial-reorganization bill? What was the overall reaction to this bill? Where did the C.I.O come from? What was the significance of the Fair Labor Standards Act?