Chapter 22: The New Deal Section 2: The Second New Deal Mr. Perry US 2

Extending Social and Economic Reform Page 740-741 What problems was the 2nd New Deal designed to fix? What was the WPA? What happens to the federal deficit between 1932-1936? How did Keynes argue that deficit spending would help end the depression?

Social Security Act The most significant New Deal program Established unemployment insurance for workers Provided a monthly pension to elderly retired workers and their widows Still around today, it provides retired workers with a pension of, on average, $1,230 a month Retired workers are eligible for Social Security at age 67

Define: Pages 741-743 Rural Electrification Administration Bonneville Power Administration

Labor Unions Page 744-745 What did the Wagner Act establish? What was established by the Fair Labor Standards Act? What workers typically joined the AFL? What was the CIO? How successful was the sit-down strike of General Motors?

Challenges to the New Deal In 1936 FDR won reelection over Alfred Landon of Kansas, Landon only won Maine and Vermont FDR made it a point in his second term to attack the Supreme Court who had struck down many of his earlier laws including the NRA and AAA FDR gave a speech to Congress asking for permission to add 6 justices to the court, he pointed out that the constitution gave no mention to the number of justices Congress refused but FDR made his point, the Supreme Court Justices feared FDR and began upholding many laws that it could have struck down The Court was now on FDR’s side but the American people began to question FDR’s tactics and the New Deal slowed down

Roosevelt’s Recession The Great Depression had begun to scale down in 1935 and 1936 but FDR cut spending in 1937 and the Federal Reserve raised interest rates hurting business As a result unemployment jumped back above 20% and the gains of FDR’s first term were all but lost During the mid-term elections of 1938 Republicans gained seats in both the Senate and the House and it would be difficult for FDR to force anymore New Deal legislation through Congress