Chapter six American history

Reasons for the second new deal - the supreme court began overturning new deal legislation. Roosevelt became frustrated and more radical, leading to the second new deal. - there was also unrest with the wealthy and big businesses. They acted as opposition to Roosevelt who believed he had been elected to save American business - the second new deal showed Roosevelt trying to favour poorer classes at the expense of the rich The Second New Deal

The Second New Deal Works Progress Administration Wagner Act July 1935 - at any one time it employed about 2 million -by 1941, employed 20% of the nation's workforce -it built 1,000 airport landing fields and 8000 schools and hospitals -wages were approximately $52 a month Wagner Act July 1935 -FDR was reluctant to be involved with unions as he wanted to avoid upsetting big businesses -guaranteed workers right to collective bargaining in unions of their own choice -National Labor Relations Board set up to ensure fair play - The Second New Deal Success or Failure? -was responsible for some large scale projects like the Lincoln Tunnel -Not allowed to compete for contracts with private firms or to build private houses Success or Failure? -effectively gave unions rights in law -FDR continued to take a back seat in labor relations

The Second New Deal Social Security Act, August 1935 - pension scheme introduced as a federal programme, funded by employer and employee contributions - pensions not to be paid out till 1940 so those receiving them had paid something in - states were left in control of unemployment benefit, funded by taxes placed on both employers and employees - generally, benefits were inadequate to meet the needs of the poor The Second New Deal Success or Failure? -it was a significant break in government tradition. It was the first system of direct benefits -unemployment benefit was just $18 a week, max of 16 weeks -pensions were only a min of $10 and a max of $85 per month Does not count as relief as it was self financing

The Second New Deal The Banking Act, August 1935 - control of banking was moved from private banks to central government, with the centre of financial management moving to Washington -it was felt Wall Street had too much power in national finance The Second New Deal