CHAPTER 13 SECTION 2 THE SECOND NEW DEAL. THE SECOND NEW DEAL CREATED PROGRAMS THAT CONTINUE TO HAVE A PROFOUND IMPACT ON THE THE SECOND NEW DEAL: 1

CHAPTER 13SECTION 2

THE SECOND NEW DEAL

• THE SECOND NEW DEAL CREATED PROGRAMS THAT CONTINUE TO HAVE A PROFOUND IMPACT ON THE • THE SECOND NEW DEAL: 1. ADDRESSED THE PROBLEMS OF THE ELDERLY, THE POOR AND THE UNEMPLOYED 2. CREATED NEW PUBLIC WORKS PROJECTS 3. HELPED FARMERS 4. ENACTED MEASURES TO PROTECT WORKERS RIGHTS

• DURING THIS PERIOD THE FIRST SERIOUS CHALLENGES TO THE NEW DEAL EMERGED

Extending Social & Economic Reform

• CONGRESS APPROPRIATED $5 BILLION FOR NEW JOBS AND CREATED THE WORKS PROGRESS ADMINISTRATION (WPA) – HEADED BY HARRY HOPKINS – THE WPA: 1. BUILT OR IMPROVED THE NATION’S HIGHWAYS 2. DREDGED RIVERS AND HARBORS 3. PROMOTED SOIL AND WATER CONSERVATION 4. PROVIDED PROGRAMS IN THE ARTS FOR DISPLACED ARTISTS


• AMONG THE MOST FAMOUS PROJECTS FUNDED BY THE WPA WERE THE SAN ANTONIO RIVER WALK AND PARTS OF THE APPALACHIAN TRAIL

• ALL THESE PROGRAMS WERE EXPENSIVE – THE GROWING DEBT LED MANY TO CRITICIZE THE PUBLIC WORKS PROJECTS


• JOHN MAYNARD KEYNES – ARGUED THAT DEFICIT SPENDING WAS NEEDED TO END THE DEPRESSION – PUTTING PEOPLE TO WORK ON PUBLIC PROJECTS PUT MONEY INTO THE HANDS OF CONSUMERS WHO WOULD BUY MORE GOODS – WOULD STIMULATE THE ECONOMY

British Economist

Social Security Act of 1935

• THE U.S. WAS ONE OF THE FEW INDUSTRIALIZED NATIONS IN THE WORLD THAT DID NOT HAVE SOME FORM OF PENSION SYSTEM FOR THE ELDERLY

• THE SOCIAL SECURITY ACT: 1. CREATED A PENSION SYSTEM FOR RETIREES 2. ESTABLISHED UNEMPLOYMENT INSURANCE FOR WORKERS WHO LOST THEIR JOBS 3. CREATED INSURANCE FOR VICTIMS OF WORK RELATED ACCIDENTS 4. PROVIDED AID FOR POVERTY STRICKEN MOTHERS AND CHILDREN, THE BLIND AND THE DISABLED

Social Security Act of 1935

• FLAWS IN THE SOCIAL SECURITY ACT: 1. IT DID NOT APPLY TO DOMESTICS OR FARMWORKERS 2. WIDOWS RECEIVED SMALLER BENEFITS THAN WIDOWERS

• SOCIAL SECURITY PROVED THE MOST POPULAR AND SIGNIFICANT OF THE NEW DEAL PROGRAMS

Rural Electric Administration (REA)- THE SECOND NEW DEAL INCLUDED FURTHER HELP FOR FARMERS – CONGRESS ESTABLISHED THE RURAL ELECTRIFICATION ADMINISTRATION (REA) – LOANED MONEY TO ELECTRIC UTILITIES TO BUILD POWER LINES WHICH BROUGHT ELECTRICITY TO ISOLATED RURAL AREAS – BY 1950 MORE THAN 80 PERCENT OF AMERICAN FARMS HAD ELECTRICITY

Labor Unions

• DURING THE DEPRESSION THERE WAS AN INCREASE IN LABOR UNION ACTIVITY

• THE NATIONAL LABOR RELATIONS ACT – WAS THE MOST IMPORTANT PIECE OF NEW DEAL LABOR LEGISLATION – CALLED THE WAGNER ACT – IT RECOGNIZED THE RIGHT OF EMPLOYEES TO JOIN LABOR UNIONS AND GAVE WORKERS THE RIGHT TO COLLECTIVE BARGAINING – MEANING THAT EMPLOYERS HAD TO NEGOTIATE WITH UNIONS ABOUT HOURS, WAGES AND OTHER WORKING CONDITIONS

Labor Unions

• THE WAGNER ACT CREATED THE NATIONAL LABOR RELATIONS BOARD (NLRB) – TO LOOK INTO WORKERS’ COMPLAINTS

• THE FAIR LABOR STANDARDS ACT – PROVIDED WORKERS WITH ADDITIONAL RIGHTS: 1. ESTABLISHED A MINIMUM WAGE 2. ESTABLISHED A MAXIMUM WORK WEEK OF 44 HOURS 3. OUTLAWED CHILD LABOR

Labor Unions

• THE INCREASE IN UNION ACTIVITY CAME AT THE SAME TIME AS A BITTER FEUD WITHIN THE AMERICAN FEDERATION OF LABOR (AFL) – REPRESENTED SKILLED WORKERS – FEW WORKERS IN THE MAJOR INDUSTRIES BELONGED TO THE AFL AND THE UNION MADE LITTLE EFFORT TO ORGANIZE THEM

Labor Unions

• JOHN L. LEWIS – FED UP WITH THE AFL’S RELUCTANCE TO ORGANIZE ESTABLISHED THE CONGRESS OF INDUSTRIAL ORGANIZATION (CIO) – TARGETED WORKERS WHO WERE LOWER PRID AND ETHNICALLY MORE DIVERSE THAN WORKERS IN THE AFL

Labor Unions

• MEMBERS OF THE CIO’S UNITED AUTOMOBILE WORKERS UNION (UAW) – STAGED A SIT DOWN STRIKE – WHERE WORKERS REFUSE TO LEAVE THE WORKPLACE UNTIL A SETTLEMENT IS REACHED – AT A GENERAL MOTORS FACTORY – STRIKE LASTED 44 DAYS UNTIL GENERAL MOTORS AGREED TO RECOGNIZE THE UAW

Labor Unions

• BY 1940 – A MILLION WORKERS BELONGED TO UNIONS – TWICE THE NUMBER OF 1930

Challenges to the New Deal

FDR WON THE 1936 ELECTION WITH 61% OF THE VOTE – WON EVERY STATE BUT MAINE AND VERMONT


• HIS GOAL FOR SECOND TERM WAS TO CHALLENGE THE GROUP THAT HE CONSIDERED THE MAIN ENEMY OF THE NEW DEAL – THE SUPREME COURT – IT HAD STRUCK DOWN MANY OF THE NEW DEAL PROGRAMS


• THE SUPREME COURT IN THE CASE SCHECHTER POULTRY V. UNITED STATES – RULED THAT SINCE THE PRESIDENT HAS NO POWER TO REGULATE INTERSTATE COMMERCE AND DECLARED THE NATIONAL INDUSTRIAL RECOVERY ACT UNCONSTITUTIONAL

• THE COURT ALSO RULED A PART OF THE AGRICULTURAL ADJUSTMENT ACT UNCONSTITUTIONAL – FDR EXPECTED THE COURT TO STRIKE DOWN OTHER NEW DEAL PROGRAMS


• FDR CALLED FOR ADDING UP TO SIX NEW JUSTICES TO THE NINE-MEMBER COURT – JUSTIFIED PROPOSAL NOTING THE CONSTITUTION DID NOT SPECIFY THE NUMBER OF JUDGES ON THE COURT -- ADDED MANY OF THE JUSTICES WERE ELDERLY AND OVERWORKED


• FDR WAS TRYING TO PACK THE COURT – CRITICS ACCUSED HIM OF TRYING TO INCREASE PRESIDENTIAL POWER AND UPSETTING THE BALANCE BETWEEN THE THREE BRANCHES OF GOVERNMENT

• FDR MIGHT HAVE BEEN ABLE TO CONVINCE CONGRESS TO LET HIM GO AHEAD WITH HIS PLAN TO ADD MORE MEMBERS TO THE SUPREME COURT BUT HE DID NOT HAVE TO – THE COURT BEGAN TO TURN HIS WAY

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CHAPTER 13 SECTION 2 THE SECOND NEW DEAL. THE SECOND NEW DEAL CREATED PROGRAMS THAT CONTINUE TO HAVE A PROFOUND IMPACT ON THE THE SECOND NEW DEAL: 1