The New Deal 1935-1939

Agenda 1. Bell Ringer: How did the First Hundred Days mobilize the United States to tackle the Great Depression? (5) 2. Notes: The New Deal 1935-1940 (25) 3. Finish Previous Class Material (20) 4. Dust Bowl Primary Source (20) 5. New Deal Timeline (10) HW: Reading Quiz 23 on Tuesday

Second New Deal and Election of 1936 VII. The Second New Deal Set off in the summer of 1935, largely focused on relief and reform. A. Relief Programs Works Progress Administration (WPA) - Spent billions of dollars to provide people with jobs. 3.4 million men and women were employed in the first year. National Youth Administration (NYA) - Provided part-time jobs to help young people stay in high school and college or until they could get a job with a private employer. Resettlement Administration (RA) - Provided loans to sharecroppers, tenants, and small farmers. It also established federal camps where migrant workers could find decent housing. B. Reform Programs National Labor Relations (Wagner) Act - Replaced the labor provision of the NIRA, guaranteeing a worker’s right to join a union and a union’s right to bargain collectively. It also outlawed business practices that were unfair to labor. National Labor Relations Board (NLRB) - Empowered to enforce the law and make sure that workers’ rights were protected. Rural Electrification Administration (REA) - Provided loans for electrical cooperatives to supply power in rural areas. Federal Taxes - A revenue act of 1935 that significantly increased the tax on incomes of the wealthy. The Social Security Act - Created a federal insurance program bases upon the automatic collection of taxes from employees and employers throughout people’s working careers. The Social Security trust fund would then be used to make monthly payments to retired persons over the age of 65.   VIII. The Election of 1936 The economy had improved, but was still weak. Roosevelt was a popular choice for the Democrat nomination because of all his work with the New Deal. A. Alf Landon The Republican nominee. He was progressive minded and accepted most of the New Deal legislation, but criticized the Democrats for spending too much money. B. The Results Roosevelt swept the win with more than 60% of the popular vote and all but two states. The Democrats reign was supported by the Solid South, white ethnic groups in the cities, Midwestern farmers, labor unions, and African Americans in northern cities.   IX. Opposition to the New Deal A. Liberal Critics Socialists and extreme liberals in the Democratic party criticized the New Deal for doing too much for business and too little for the unemployed and the working poor. They believed the president failed to address the problems of ethnic minorities, women and the elderly. B. Conservative Critics Huge attacks for giving the federal government too much power. Business leaders were alarmed by increased regulations, pro-union beliefs, and the financing of government programs with borrowed money. Many objected to deficit financing. The American Liberty League was created to stop the New Deal from “subverting” the economic and political system. C. Demagogues - Playing on the American people’s desperate want for immediate solutions to their problems.

Issues with the Supreme Court Court-reorganization Plan - Also known as the “Court-packing” bill, it proposed that the president be authorized to appoint to the Supreme Court an additional justice for each justice who was older than the age of 70.5 years Roosevelt proposed to bill as a way to eliminate the Supreme Court as an obstacle to the New Deal. Reaction - Republicans and even many Democrats were outraged at the idea because they saw it as an attempt to tamper with the system’s checks and balance system which lead them to believe that the president wanted to give himself power as a dictator. For the first time, Roosevelt’s bill was not pushed through by Congress and it was even stuck down by the majority of the Senate. Aftermath - Even though his bill didn’t go through, the Court continued to pass other bills and many of the older justices retired, allowed Roosevelt to appoint new ones. X. Rise of Unions From the New Deal, the National Industrial Recovery Act and the Wagner Act caused a lasting change in labor-management relations by legalizing labor unions. Union memberships soared from 3 million to over 10 million by 1941. The Committee of Industrial Organizations (CIO), lead by John L. Lewis, was the joining of industrial labor unions in 1935 and was extended to all workers in an industry regardless of their race, sex, or skill. Even though collective bargaining was protected by federal law, many companies still resisted union demands and strikes were therefore a frequent occurrence. Strikes were common during the depression, especially in the steel and automobile industry. The Fair Labor Standards Act was also passed in 1938, establishing: - A minimum wage - A maximum workweek of 40 hours and time and a half for overtime - Child-labor restriction on those under 16  

New Deal 1937-1939 The Last Phase of the New Deal The Fair Labor Standard Act was the last act passed in Roosevelt’s second term, after that the New Deal lost momentum. A. Recession, 1937-1938 Banks were becoming more stabilized, business earnings were increasing, and unemployment was slowly declining. Causes - The Social Security tax reduced consumer spending and by reducing spending for relief, the president hoped to balance the budget and reduce national debt. Keynesian Economics - The use of deficit spending, like “priming the pump” in order to increase investment and create jobs. With this belief, Roosevelt’s spending on public works and relief went up and so did employment and industrial production. B. Weakened New Deal Although the economy was improving, there was no boom and problems still remained. People began to slowly loose faith in Roosevelt as Republicans and conservative Democrats began to block New Deal reform legislation. Also, in 1938, fears of the aggression of Nazi Germany diverted U.S. attention away from domestic policy and began to focus on foreign affairs.