NEW CHALLENGES Chapter 25 Section 2
CRITICS OF THE NEW DEAL Criticized by both liberals and conservatives Thought New Deal was to slow in easing Economic troubles Francis E. Townsend of California wanted every American over 60 years old to receive $200 a month Charles E. Coughlin urged the gov’t to nationalize all banks and go to silver standard Huey Long – take from the rich and give to the poor Share-Our-Wealth program Seize wealth from the rich through taxes and provide a guaranteed minimum income to every American Family Assassinated in 1935
THE SECOND NEW DEAL Democrats win more seats in 1934 elections Victory and pressure from liberals encourage New Deal legislation on more public works, social-security plan, and wage and hour improvement for laborers Works Progress Administration (WPA) – help Americans find work $5 billion budget and over next 8 years WPA employed 8.5 million people National Youth Administration or “junior WPA” Intended to help people between ages of 16-25
SOCIAL SECURITY Social Security Act – August 1935 Contained 3 major provisions 1 st – provided unemployment insurance to workers who lost their jobs Funds came from payroll tax on businesses 2 nd – provided pensions to retired workers older than age 65 Funds came from payroll tax on employers and a tax on employees wages 3 rd – provided payments to people with disabilities, the elderly, and the wives and children of male workers who had died
OTHER PROGRAMS Rural Electrification Administration (REA) Provides electric to isolated rural areas Congress also passed a law giving gov’t the right to regulate the interstate production, transmission, and sale of gas and electricity This kept utility costs low Roosevelt passed Revenue Act in 1935 Sharply raised taxes for the nation’s richest people
ELECTION OF 1936 Roosevelt vs. Alfred M. Landon Pledged to continue New Deal Most African Americans in the North supported the Democrats Roosevelt won every state but Maine and Vermont 28 Million votes to 17 Million to Landon Democrats also increased their majorities in both houses of Congress
ROOSEVELT VS. SUPREME COURT “Reform” Supreme Court Angry that the court had declared several New Deal measures unconstitutional Labeled the justices “Nine Old Men” – six were 70 or older 1937 Roosevelt asks Congress to grant him the power to appoint 1 new Justice for each of those over 70 Triggered many protests “Court Packing” tampered with the balance of powers Congress rejected Roosevelt’s request By 1945 eight of the nine justices were Roosevelt appointees
EFFECTS OF SECOND NEW DEAL National Labor Relations Act or Wagner-Connery Act Guaranteed right to organize unions and to bargin collectively for better wages and working conditions American Federation of Labor (AFL) – Skilled workers Congress of Industrial Organizations (CIO) – organized skilled and unskilled in any given industry GM – Sit-down strike, refused to leave management met their demands Union membership rose nationwide from 4 million in 1936 to 9 million in 1939
ON STRIKE
FARMERS Congress passes second AAA act in Authorized payments to farmers who practiced conservation Limited the amount of crops brought to market each year Gov’t took surplus and gave farmers loans on amount of surplus crops they had stored Farm Security Administration (FSA) Long term low interest loans to help tenant farmers and sharecroppers buy land Established camps where migrant farmworkers could seek shelter and medical aid
ROOSEVELT’S RECESSION 1936 began cutting back on relief and public works programs By fall of 1937 factories were closing and unemployment rose Republicans dubbed it “Roosevelt’s Recession” $3 billion dollars given to expand WPA and restart PWA Prevented recession from worsening Election of 1938 critics of the New Deal will be elected Republicans gained 7 seats in Senate and 75 in the House Roosevelt did not propose any new reforms in His leadership and popularity had already shifted balance of power in the federal gov’t from the legislative branch to the executive branch