CHAPTER 13 SECTION 2 THE SECOND NEW DEAL

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. 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

Extending Social & Economic Reform • 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

Extending Social & Economic Reform • 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 • JOHN L. LEWIS – FED UP WITH THE ALF’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

Challenges to the New Deal • 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

Challenges to the New Deal • 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

Challenges to the New Deal • 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

Challenges to the New Deal • 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

CHAPTER 13 SECTION 2 THE SECOND NEW DEAL