1. CH. 23.2: The Second New Deal takes Hold
OBJECTIVES:
Describe the purpose of the Second New Deal
Summarize some of the programs of the Second New Deal that helped farmers
Summarize labor and economic reforms carried out under the Second New Deal

2. Why was a “Second New Deal” and a “Second Hundred Days” needed?
Some gains made by First New Deal,
but modest
Unemployment still high
Democrats increased hold on Congress in 1934 elections
More needed for “forgotten man” at bottom of social ladder

3. “Forgotten Man” Unemployment remained high
Forgotten Woman
Unemployment remained high
Govt. work programs and production still lagged behind the levels of the 1920s
1934 elections – Democrats took over the House and Senate even more
Roosevelt and his wife, Eleanor Roosevelt pushed for Congress to provide more extensive relief for farmer and workers
Forgotten Woman
President Franklin D. Roosevelt campaigned on helping the "forgotten man." As shown in this political cartoon Eleanor Roosevelt, the First Lady, did not forget women. She worked diligently to ensure that they benefited from the New Deal and had access to government and the Democratic Party. (Franklin D. Roosevelt Library)
Copyright © Houghton Mifflin Company. All rights reserved.

4. Election of 1936 Landon (Republican), Gov. of Kansas
FDR (Democrat), incumbent
ISSUE: “waste” and radicalism of New Deal
OUTCOME: 523 to 8 for FDR
ANALYSIS: FDR built a new coalition of South, blacks, urbanites, poor and “New Immigrants”

5. HELP FOR FARMERS Helps sharecroppers, small farmers, migrant workers
Recovery starts with the first AAA, but the Supreme Court strikes it and other New Deal programs down as unconstitutional in 1936 because it contained taxes for subsidies.
1938- Congress passes “Second” Agricultural Adjustment Act (AAA), without the subsidies tax.
Helps sharecroppers, small farmers, migrant workers
Loaned more than a $1 billion to farmers

6. HELP FOR PROFESSIONALS, YOUTH, AND ARTISTS
Works Progress Administration (WPA)
Employed 8 million between 1935 & 1943
Repaired roads and streets; built libraries, schools and hospitals
FOCUS: Unskilled workers construct public works;
Skilled workers (artists, teachers, architects) hired to create cultural, literary, and intellectual “common goods.”
National Youth Administration (NYA)
PART time work for youth (vs. FULL time in CCC)

7. Early Labor Relations NIRA receives broad “legislative” powers
Writes codes of “fair competition”
Receives cooperation of labor and business – at first
Continuing economic stagnation erodes voluntary nature of codes
Supreme Court kills NIRA with Schechter decision
unconstitutional delegation of legislative powers
regulation of INTRA-state commerce unconstitutional
PWA (Public Works Administration) replaces NRA
and proves more successful and more constitutional.

8. A. L. A. Schechter Poultry Corp. v
A. L. A. Schechter Poultry Corp. v. United States CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SECOND CIRCUIT No. 854 Argued: May 2, 3, Decided: May 27, 1935 [*]
1. Extraordinary conditions, such as an economic crisis, may call for extraordinary remedies, but they cannot create or enlarge constitutional power. P. 528.
2. Congress is not permitted by the Constitution to abdicate, or to transfer to others, the essential legislative functions with which it is vested. Art. I, § 1; Art. I, § 8, par Panama Refining Co. v. Ryan, 293 U.S P. 529.
3. Congress may leave to selected instrumentalities the making of subordinate rules within prescribed limits, and the determination of facts to which the policy, as declared by Congress, is to apply; but it must itself lay down the policies and establish standards. P
4. The delegation of legislative power sought to be made to the President by § 3 of the National Industrial Recovery Act of June 16, 1933, is unconstitutional (pp. 529 et seq.), and the Act is also unconstitutional, as applied in this case, because it exceeds the power of Congress to regulate interstate commerce and invades the power reserved exclusively to the States (pp. 542 et seq.).

9. New Deal for Labor Wagner Act Schlechter decision & collapse of NIRA 
Guarantees self-organization and collective bargaining
Fair Labor Standards Act of 1938 – Establishes maximum hours and minimum wages (EXCLUDES domestics, farm workers and service workers)
Unions reward FDR at election time

10. NOTE!!! Had to be employed to get coverage!!!
Social Security
1935
1. Old-age insurance for retirees 65 or older and their spouses
You would get an amount based on how much you contributed
2. Unemployment compensation system
Federal tax on employers
3. Aid to families with dependent children and the disabled
Financed by Federal funds
NOTE!!! Had to be employed to get coverage!!!
Social Security poster
Enacted in 1935, Social Security has been one of the most enduring of all New Deal programs. This poster urges eligible Americans to apply promptly for their Social Security cards. (Library of Congress)

11. TERMS Eleanor Roosevelt Works Progress Administration
National Youth Administration
Wagner Act
Social Security
OBJECTIVES:
Describe the purpose of the Second New Deal
Summarize some of the programs of the Second New Deal that helped farmers
Summarize labor and economic reforms carried out under the Second New Deal