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23-3 Notes

23-3 Notes. The 2 nd New Deal. I. Challenges to the New Deal. A. Criticism from the Right. Conservative Republicans & S. Dems Too many gov’t regulations on business Too much federal power at the expense of states’ rights Opposed deficit spending

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23-3 Notes

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  1. 23-3 Notes The 2nd New Deal

  2. I. Challenges to the New Deal

  3. A. Criticism from the Right • Conservative Republicans & S. Dems • Too many gov’t regulations on business • Too much federal power at the expense of states’ rights • Opposed deficit spending • American Liberty League formed to oppose New Deal • Threatened to split Democratic Party

  4. B. Criticism from the Left • Many argued New Deal didn’t go far enough • Sen. Huey Long (fmr. Gov. of LA) a. Massive projects help LA poor b. Very corrupt c. Attacked the wealthy d. “Share Our Wealth” clubs e. Could cost FDR the 1936 Election f. assassinated

  5. B. (continued) 3. Father Charles Coughlin a. Popular radio show (30-45 million) b. Impatient with the New Deal c. Called for heavy taxation on the wealthy d. Wanted gov’t to control banking system

  6. B. (continued) • Dr. Francis Townsend a. Proposed gov’t pay people over 60 a pension of $200 per month 1. they had to spend it all 2. they had to be retired 3. this would increase spending & free more jobs for the unemployed b. He was very pop. With old people

  7. B. (continued) 5. Support for Long, Coughlin, & Townsend threatened FDR’s reelection in 1936

  8. II. Launching the 2nd New Deal

  9. A. Works Progress Admin. (WPA) • goal: provide as many jobs as possible • Spent $11 billion, employed 8.5 million • Built 650,000 mi. of roads • Built 125,000 public buildings • Built parks, bridges, & airports

  10. A. (continued) • Employed just about anyone: a. Artists: painted murals b. Writers: documented Depression c. Musicians: symphony orchestras & recorded Appalachian music d. Photographers: documented Dep. e. Historians: interviewed fmr. slaves

  11. B. The Supreme Court • Conservative S. Ct. blocks some New Deal programs • AAA & NIRA ruled unconstitutional • FDR pressures Congress for more New Deal programs (2nd New Deal-1935)

  12. III. Rise of Industrial Unions

  13. A. FDR Supports Unions • unions higher wages • Higher wages more spending • More spending economic recovery • Economic recovery FDR reelected

  14. B. National Labor Relations Act (Wagner Act) • Workers have a right to organize • Gives unions collective bargaining ability • Creates National Labor Relations Board (NLRB): a. Holds elections to see if workers want a union or not b. Investigates complaints from workers 4. Union membership explodes

  15. C. Congress of Industrial Organizations (CIO) • Many unions within an industry combined to form a more powerful union • Included all workers in an industry (skilled & unskilled) • Started with auto & steel industries

  16. D. General Motors Strike • GM demotes two workers • Factory workers sit down to protest • Other GM factories join protest • Stopped all work at GM • Violence breaks out • GM gives up in less than 2 months • United Auto Workers Union recognized

  17. E. US Steel • doesn’t want repeat of GM strike • Recognizes US Steelworkers Union • Set 40 hour workweek & 10% raise

  18. IV. The Social Security Act (1935)

  19. A. Goals: • Security for retired workers • Help unemployed & disabled

  20. B. How it Works: • Workers & employers pay into system until they retire (65) • When you retire you get a monthly payment

  21. C. Also Covers: • Benefits to disabled workers • Benefits to poor families with children • Unemployment benefits

  22. D. Where does the $$ come from? • Payroll deductions • Employer & employee both pay in the same amount

  23. E. Problems with Social Security: • didn’t cover farmers or domestic workers • Many African Americans (65%) and poor whites were left out of the system • Congress started to borrow money from Social Security as soon as it was created • Needs many more people working & paying into the system than people retiring & taking out a. 1936: 16 to 1 ratio b. 2005: 4 to 1 ratio…bad

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