2 nd New Deal April 1, 2015

1 st New Deal: helps ECONOMY – Banks, businesses 2 nd New Deal: helps PEOPLE – Elderly, poor, unemployed, & farmers 1. Works Progress Administration (WPA) $5 billion invested to create new jobs to build highways By 1943 – over 8 million employed & over $11 billion spent through WPA – Over 650,000 highways built – 125,000 public buildings built Gov’t programs increase DEFICIT (debt) in budget 1932: $461 million deficit 1936: $4.4 billion deficit John Maynard Keynes (British economist) agrees with gov’t spending – Pump Priming: Need to SPEND $$$ to MAKE $$$

2. Social Security Act provided (1) retirement pensions; (2) unemployment compensation; (3) help with work related accidents; (4) help poor (welfare); (5) Help disabled PROBLEMS with Social Security: Social Security did NOT apply to workers at home Farmers Widows (female) received less $$$ than Widowers (men) because they claimed that women needed LESS money than men When Depression started, only 10% of farmers have electricity Not profitable for electric companies to run power lines to rural America 3. Rural electrification Administration (REA): gov’t loan $$$ to build power lines to rural America – By 1950: 80% of farmers have electricity

4. National Labor Relations Act (aka The Wagner Act): gave workers the right to join unions & collective bargain Collective Bargaining: employers can negotiate with unions about hours, wages, & working conditions 5. Fair Labor Standards Act: officially set minimum wage (25 cents per hour); max number of 44 hours per week; no child labor American Federation of Labor (AFL): union for SKILLED Workers Congress of Industrial Workers (CIO): union formed in 1936 to target ALL workers 1936: FDR wins re-election By 1936, economy much better (unemployment rate 15%) – FDR cut gov’t spending (too early; Depression not over) – Unemployment goes back up to 20% Many people angry because FDR gaining too much power 1.Proposed many new gov’t programs 2.Picked 3 Supreme Court Justices while president