1. The Second New Deal

2. The Second New Deal
Roosevelt’s first two years were largely focused on one of the three R’s: recovery
Democratic victories in mid-term elections gave the president even more support to pass a second round of laws and programs
Focused more on the other two R’s: relief and reform

3. Relief Programs: The WPA and the RA
Works Progress Administration
Spent billions of dollars between to provide people with jobs
Employed 3.4 million men and women put to work constructing new bridges, roads, airports, and public buildings
Hired artists, writers, actors, and photographers to paint, write, and perform
Resettlement Administration
Provided loans to sharecroppers, tenants, and small farmers
Established federal camps where migrant workers could find decent housing

4. Reform Programs: The Wagner Act (1935)
Roosevelt believed industrial workers and farmers needed more govt. help than members of the business/privileged classes
The Wagner Act guaranteed a worker’s right to join a union and a union’s right to collective bargaining
Outlawed business practices that were unfair to labor
The National Labor Relations Board (NLRB) was empowered to enforce the law, make sure workers’ rights were protected

5. Reform Programs: The REA and Federal Taxes
Rural Electrification Administration
Provided loans for electrical cooperatives to supply power in rural areas
Federal Taxes
Revenue Act of 1935 greatly increased taxes on the incomes of the wealthy
Also increased taxes on large gifts from parent to child and on capital gains (profits from the sale of stocks or other properties)

6. The Social Security Act
Created a federal insurance program based on the automatic collection of payments from people throughout their entire working career
Social Security trust fund would be used to make monthly payments to retired persons over 65
Unemployed, disabled, and dependent mothers and children could also qualify to receive Social Security

7. The Election of 1936 FDR was enormously popular
Except for among businesses and the very wealthy
Alf Landon was a progressive-minded Republican who criticized the Democrats for spending too much
Although he generally accepted most of the New Deal legislation
Roosevelt won by a landslide
Every state except Maine and Vermont; 60% of the popular vote
Democrats had a majority in almost every region in the country now

8. Opponents of the New Deal: Liberals and Conservatives
Some extreme liberals attacked the New Deal saying it did more for businesses than it helped out the unemployed and working poor
Accused FDR of failing to address the needs of minorities, women, and the elderly
Most conservatives charged that the New Deal gave the federal government too much power
Argued some programs bordered on socialism, communism
Business leaders alarmed by three things:
Increased regulations
Pro-union legislation of the second New Deal
Financing programs by using borrowed money (deficit financing)

9. Opponents of the New Deal: Demagogues
Father Charles E. Coughlin was a Catholic priest who made weekly radio broadcasts
Founded an organization that called for issuing inflated currency and nationalizing all banks
His attacks on the New Deal became increasingly anti-Semitic and Fascist until his superiors in the Church ordered him to stop his broadcasts

10. Opponents of the New Deal: Demagogues
Dr. Francis E. Townsend became an instant hero among the elderly
Proposed a 2% federal sales tax be used to create a special fund from which every retired person would receive $200 a month
By spending this $200 quickly, Townsend argued the recipients could stimulate the economy and help end the Depression
The popularity of the Townsend Plan inspired Roosevelt’s idea for what would become the Social Security system

11. Opponents of the New Deal: Demagogues
Roosevelt’s greatest political competition came from “Kingfish” Senator Huey Long
Long became nationally popular when he proposed the “Share Our Wealth” program
Promised a minimum yearly income of $5,000 for every American family, to be paid for by taxing the wealthy
Long challenged Roosevelt’s leadership in the Democratic party when he announced his candidacy for president in the election
He was killed by an assassin before he could run

12. Opponents of the New Deal: The Supreme Court
The conservative decisions of the Supreme Court proved to be the biggest challenge to FDR’s New Deal legislation
FDR’s reelection in 1936 convinced him the American public was on his side
Proposed a judicial-reorganization bill in 1937
This bill proposed the president could appoint new justices to the Supreme Court for every justice who was older than 70 and a half years
In effect, would’ve allowed Roosevelt to add up to 6 more judges to the Court (all who would’ve presumably been liberal)

13. Opponents of the New Deal: The Supreme Court
Both Republicans and Democrats were outraged over the judicial- reorganization bill
Saw it as an attempt to tamper with the system of checks and balances
Roosevelt did not back down from his proposal, and neither did Congress
The first major bill FDR proposed that was defeated decisively by Congress
Even most Democrats refused to support FDR’s “court-packing” bill

14. Opponents of the New Deal: The Supreme Court
Ironically, the Supreme Court was already backing off its resistance to some of FDR’s programs
1937: Upheld the constitutionality of several major New Deal laws
Several justices retired during Roosevelt’s second term
Enabled him to appoint new justices who shared his views without having to “pack” the court

15. The Rise of Unions
New Deal measures (NRA and Wagner Act especially) caused union membership to shoot upward
Less than 3 million in early 1930s up to 10 million by 1941
As unions grew bigger, tension and conflicts occurred between rival unions
The many different unions that made up the American Federation of Labor (AFL) were dominated by skilled white males and were organized according to crafts
Some unions in the AFL wanted membership to be extended to all workers regardless of race, sex, and even skill

16. The Rise of Unions: The CIO
Industrial unions formed the Committee of Industrial Organizations
The AFL suspended the CIO in 1936
Renamed the Congress of Industrial Organizations, the CIO broke away from the AFL and became its chief rival
The CIO concentrated on organizing unskilled workers in the automobile, steel, and textile industries

17. Fair Labor Standards Act
Some companies still resisted union demands, and major strikes still occurred in the automobile and steel industries
The Fair Labor Standards Act of 1938 provided for the following:
Minimum wage fixed at 40 cents/hour
Maximum standard work week of 40 hours, with overtime pay
Child-labor restrictions on hiring people under 16
This was the final political victory for labor in the 1930s and also the last major reform of the New Deal

18. ?
What were two major relief programs passed during the Second New Deal?
What was the significance of the Wagner Act?
What did the Social Security act provide for?
What did conservatives criticize about the New Deal?
What things were conservative business leaders alarmed about over the New Deal?
How did Dr. Francis E. Townsend affect New Deal legislation?
Who was FDR’s biggest political threat? Why?
What was the purpose of FDR’s judicial-reorganization bill? What was the overall reaction to this bill?
Where did the C.I.O come from?
What was the significance of the Fair Labor Standards Act?