Chapter 12 Section 2 The Second New Deal

Critics of the New Deal By 1935, the New Deal was facing criticism from the right and the left. The right opposed Roosevelt’s deficit spending. Borrowing money from the government to finance programs. Other challenges came from the left, they felt FDR was not doing enough to help the people. Three opponents threatened to draw enough votes to stop Roosevelt’s reelection in 1936.

Father Coughlin Catholic priest from Detroit, Michigan. Know as the “Radio Priest” Originally supported the New Deal. Impatient with FDR’s reforms, he called for the government to nationalize the banking system.

Huey Long Senator of Louisiana, known as the “King Fish”. Helped the poor in Louisiana. 1934, established Share our Wealth Society. Wanted to redistribute the wealth from wealth Americans to poorer Americans.

Francis Townsend A California doctor Wanted the government to pay Americans over the age of 60, a $200 month pension. People getting the pension would have to spend their $200. His plan would help unemployed American get back to work.

Second New Deal Roosevelt soon began a series of programs called the Second New Deal. He asked Congress for funds to provide work relief and jobs.

WPA One such program created a new federal agency called the Works Progress Administration (WPA). Its workers built highways, roads, public buildings, and parks. The result of the WPA: Between 1935 and 1941, the WPA spent $11 Billion and employed 8.5 million workers.

Federal Program Number One A program called Federal Program Number One gave jobs to artists, musicians, and writers. They created murals and sculptures and gave concerts. Writers recorded oral history and stories.

Supreme Court In May 1935, the Supreme Court struck down the National Recovery Administration, finding the NRA codes unconstitutional. In Schechter Poultry Company v. United States, the Supreme Court ruled that the Constitution did not allow congress to delegates its powers to the executive branch.

Supreme Court The Supreme Court ruling against the NRA also struck down the part of the NIRA that protected the right to form unions. The President and Congress knew the labor vote would be important in the 1936 election.

Unions They also believed higher union wages gave workers more money to spend to help the economy. Opponents argued that high wages meant higher costs and less money to hire workers.

NLRA or Wagner Act In July 1935, Congress passed the National Labor Relations Act, or the Wagner Act. The Wagner Act guaranteed workers’ rights to form unions and bargain collectively. It also set up the National Labor Relations Board (NLRB), which organized secret ballots to form unions.

Wagner Act The Wagner Act provided for binding arbitration. This meant that both sides to an argument could be heard by a third party who would decide the issue.

Helping Unions The Wagner Act stimulated more union activity. The United Mine Workers worked with other unions to organize other industrial workers. They formed the Committee for Industrial Organizations (CIO) in 1935. The CIO’s purpose was to organize unions that included all workers, whether skilled or unskilled within a particular industry. The CIO organized the automotive and steel workers.

Sit-Down Strikes Union organizers started using new tactics such as the sitdown strike. In this strike, workers stopped work inside the factory and refused to leave. Companies could not send in replacement workers. The United Auto Workers (UAW) union organized many successful sit-down strikes. At a General Motors plant, a strike ended when GM recognized the UAW as its employees’ sole bargaining agent.

Social Security Roosevelt and his advisors spent months preparing the Social Security Act. They viewed it as an insurance measure. The goal of the Social Security Act was to provide some security for older Americans and unemployed workers.

How Social Security Worked In the Social Security system, workers pay premiums. These premiums are a tax paid to the federal government. The government then distributes this money. Retired workers over the age of 65 could collect a monthly retirement benefit.

Social Security, who it helped Unemployed workers looking for jobs could receive temporary income. Poor mothers with children and the disabled could receive welfare payments.

Social Security did not help The Social Security Act helped many people, but it left out: Poor farmers and domestic workers. About 65 percent of African Americans fell into those two groups.

Social Security Legacy Social Security established the idea that government should take care of those who were unable to work.