Chapter 25 Section 2

1. Chapter 25Section 2 New Challenges Pages 747-753

2. Objectives • 1. Discuss the criticisms aimed at the New Deal. • 2. Recount how the Second New Deal enabled President Roosevelt to win re-election easily in 1936. • 3. Describe how Roosevelt tried to prevent the Supreme Court from overturning his programs. • 4. Analyze how the Second New Deal benefited labor and agriculture. • 5. Explain the Roosevelt recession, and describe the effect it had.

3. Critics of the New Deal • American Liberty League: Conservative group made up of Republican business leaders. Many in the league complained that the New Deal measures were destroying the Constitution and free enterprise. • Al Smith: Democrat also joined the league. • Dr. Francis E. Townsend: liberal reformer from California who didn’t support the New Deal. He felt that the government needed to grant a pension of $200 a month to every American over the age of 60. You would have 30 days to spend the money to help the economy.

4. Father Charles E. Coughlin: from Michigan he was a radio priest who wanted the government to nationalize all banks and return to the silver standard. • Senator Huey Long: U.S. Senator from Louisiana. • 1934, Share-Our-Wealth: was a program introduced by Long in the spirit of Robin Hood take from the rich and give to the poor. To do this the rich would be taxed and a guaranteed minimum income and every family would have a home. He even had a theme song, “Every Man a King.”

5. Huey Long • Louisiana politician Huey Long held populist ideas from the beginning of his career, when he attacked Standard Oil and opposed the Ku Klux Klan. As governor, Long abolished his state’s local governments and personally controlled the courts, the militia, police forces, schools, and the tax assessors. He was impeached by the state legislature but not convicted. A supporter of some New Deal programs, Long like Roosevelt’s proposal to regulate public utilities, but worried that “we might as well try to regulate a rattlesnake.” He warned that rich people would rather let the nation “go slap down to hell” than give up their economic supremacy. Some 27,000 Share-Our-Wealth clubs had formed across the nation by the time Long was assassinated in 1935.

6. The Second New Deal • The Second New Deal was about long term reforms with more public-works programs, social security, and labor for wage and hour improvements. • Works Progress Administration: 1935 (WPA)After the CWA (Civil Works Administration) ended this program was implemented and led by Harry L. Hopkins. The program was designed to put Americans back to work on a 5 billion dollar budget. Blue Collar workers built public airports, public buildings, roads, and bridges. White Collar workers had jobs in teaching and research projects.

7. National Youth Administration: (NYA) The WPA worked to help young people between the ages of 16-25. The NYA provided part time jobs for high-school and college-age young people to stay in school. • Mary McLeod Bethune: Was appointed as Director of the Division of Negro Affairs of the NYA. The first lady insisted on her appointment from the Black Cabinet. She worked for racial and educational opportunities for African Americans. In 1945 she was part of the delegation to the United Nations. 1949 she established the National Council of Negro Women, which opposed the poll tax and promoted teaching Black History Month.

8. Social Security Act: August, 1935. The Act had Three Provisions: First: provided unemployment insurance to the those who have lost their jobs. Second: pensions for workers over the age of 65-the money came from two sources, payroll taxes on employers and taxes on employees’ earnings. Third: shared federal-state program, provided payments to citizens with disabilities, elderly, and wives and children of male workers who have died.

9. Rural Electrification Administration (REA): May, 1935-provided electricity to isolated rural areas. Congress also passed a law to regulate interstate production, transmission, and sale of gas and electricity. This would keep utility costs low. • Revenue Act of 1935- Wealth Tax Act: Roosevelt chose to target the wealthy and raised taxes on the rich.

10. Food Programs for People in Poverty • The Second New Deal introduced a plan to provide surplus food to people who were eligible for federal work relief. This early food-stamp plan allowed participants to buy orange-colored food stamps. For each dollar of orange stamps purchased, the buyer would be given 50-cents worth of blue stamps. Orange stamps could be used to buy any kind of food, but blue stamps could be used only for surplus foods. Critics of the program noted that it helped only some people in need and that it required people to purchase the orange stamps in order to receive blue stamps. The program operated until WWII. The Food Stamp Act of 1964 initiated the program in use today. Under this program, financial assets and income determine participants eligibility.

11. The election of 1936 • Democrats nominated Roosevelt for a second term in June 1936. The Republicans nominated Alfred M. Landon the governor of Kansas. Roosevelt won the election easily with the support of farmers, labor unions, many on relief, Republicans supported, and African Americans supported him in the North.

12. Roosevelt and the Supreme Court • After Roosevelt won his election in 1936 he decided to “reform” the Supreme Court. He didn’t like the fact the Supreme Court had found several of the New Deal initiatives unconstitutional. He described the court as “Nine Old Men”- six were 70 and older. • February, 1937: Roosevelt asked Congress to give him the power to appoint one new justice for every one that was 70 or older, which would be up to six new justices. • “Court Packing”: Both Democrats and Republicans protested it would upset the balance of power. Congress rejected Roosevelt’s request. The court did uphold the Social Security Act and the National Labor Relations Act. Over the next four years several justices either died or retired. So by 1945 eight or nine justices were appointed by Roosevelt.

13. Effects of the Second New Deal • May, 1935- The Supreme Court declared the National Industrial Recovery Act (NIRA) were unconstitutional. • National Labor Relations or Wagner-Connery Act: 1935- Congress passed this act which gave labor rights to organize unions and bargain collectively for better wages and working conditions.

14. Labor • Labor: American Federation of Labor (AFL) worked towards organizing skilled workers. • 1935: United Mine Workers-John L. Lewis-leader of the United Mine Workers organized what would become the Congress of Industrial Organizations (CIO) • 1936-37: General Motors (GM) strike against GM in the winter by the United Automobile Workers (UAW) who had been trying to unionize GM factory workers. GM was resisting the union in the factories. By December 31, 1936, factory workers were angry over factory conditions which led to a sit-down strike-instead of leaving the factory workers stayed in the plants. They promised to remain until management met their demands. GM gave into the demands and allowed the UAW to organize in the plants. This was in part of the Wagner-Connery Act.

15. Farmers The Supreme Court put down the Agricultural Adjustment Act in January, 1936. Congress chose to revisit the AAA by still helping farmers by cutting production to keep prices high. To avoid the Supreme Court they linked cutting crop production with a soil conservation plan. Second Agricultural Adjustment Act: 1938: This law authorized payments to farmers who withdraw land from production and practiced conservation. It also limited the amount of specific crops could be brought to market each year. The government would store surpluses until the market rose. Farm Security Administration (FSA) 1937: It provided low-interest, long-term loans to support tenant farmers and sharecroppers to purchase land. The FSA also setup camps in migrant farm workers could seek shelter and medical support.

16. Roosevelt’s Recession • 1936: Roosevelt started to cut back on relief and public-works programs. He was responding to the critics who were concerned over government spending. • 1937: “Roosevelt’s recession” factories were closing and unemployment was on the rise. • Congress and Roosevelt: expanded the WPA, PWA was started again, and other agencies were funded. The intervention helped alittle. • 1938: Congressional elections, Roosevelt opposed conservative Democrats in Congress who didn’t support the Second New Deal. Critics and Republicans were elected to congress who didn’t support the Second New Deal. • 1939: Roosevelt didn’t introduce any new programs or reforms. His popularity shifted the balance of power from the legislative branch to the executive branch.