Second New Deal
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Second New Deal






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Second New Deal Second New Deal Presentation Transcript

  • The Second New Deal The New Deal 1933-1940
  • Questions of the Day
    • What key programs were created in the Second Hundred Days?
    • Why did critics of the first New Deal favor the Second New Deal?
    • What was the National Labor Relations Board empowered to do?
    • What is the advantage of a sit-down strike vs. a traditional strike?
    • What were the major differences between the AFL and the CIO?
    • How did the election of 1936 show support for the New Deal?
    • What events made 1937 a troubled year for President Roosevelt?
  • The Second Hundred Days
    • Election of 1934, 3/4 of Congress = Democrats
    • Courts kept finding parts of New Deal unconstitutional
    • Economy wasn’t recovering
    • People wanted more
  • The Second New Deal
    • Spring 1935 - Roosevelt launched the Second New Deal
      • During time called Second Hundred Days
      • Extended government oversight of banks
      • Raised taxes on the wealthy
      • Funded new relief programs
  • Works Progress Administration
    • Roosevelt believed people should work for pay
    • 1935 - Created Work Progress Administration (WPA)
      • Largest peacetime jobs program in US history
      • Employed 3.4 million formerly jobless
      • Built roads, subways, airports, zoos
      • Funded artists, writers, actors, composers
    • Earning a paycheck vs. getting a handout lifted people’s spirits
  • Social Security
    • August 1935 passed Social Security Act
      • Created a pension (guaranteed, regular payments) for people 65+
        • Retirees didn’t have to fear hunger, homelessness if too old to work
      • Provided unemployment insurance
        • Gave people who lost jobs financial support while they looked for work
  • Social Security
    • Response to critics that wanted help for older Americans
    • Passed new taxes to fund the program
      • Taxed workers and employers
      • Didn’t want to increase taxes too much, so many people were left out
  • Reviving Organized Labor
    • NIRA moved organized labor forward
      • Allowed to form unions, bargain collectively
    • Businesses ignored new rights of laborers
    • Unions lost numerous strikes in 1934
      • Labor related violence increased
    • NIRA weakened in Schechter vs. U.S.
  • The Wagner Act
    • Roosevelt supported the Wagner Act
      • aka National Labor Relations Act
      • Outlawed anti-labor practices
      • Established National Labor Relations Board (NLBR)
        • Conduct voting in workplaces to determine whether employees wanted union representation
        • Require businesses to accept voting results
    • Organized labor membership soared
  • AFL vs. CIO
    • American Federation of Labor
    • Collection of smaller unions of skilled workers
    • Organized by their specific craft
    • Looked down on unskilled workers
    • Committee for Industrial Organization
    • Started by John L. Lewis
      • Broke away from AFL
      • Fiery speaker, organizer
    • Mostly unskilled workers
  • GM Sit-Down Strike
    • 1936 - United Auto Workers (part of CIO) launch sit-down strike at GM plant in MI
      • Workers required to stay day and night inside the factory until dispute is resolved
    • Why is this more difficult to deal with?
  • GM Sit-Down Strike
    • State government refused to help
    • Shutdown cost GM millions per week in sales
    • Workers prevailed & after 6 weeks, GM gave in
      • Huge victory for labor and CIO
      • Recognized CIO as major force in organized labor
    • Unions continued to grow
      • By 1940, 1/4 of American workforce belonged to unions
  • Rural Electrification Act
    • Created the Rural Electrification Administration
    • Loaned money to farm cooperatives & other groups to bring electricity to rural dwellers
    • Under REA the number of rural homes with electricity grew from 10% to 90% in 10 years
  • Roosevelt Re-elected
    • Campaigned on solid record of achievement
      • Unemployment decreased by half
      • Income, earnings increased
      • New Deal programs gave help and hope to millions
    • No real competition
    • Roosevelt spoke against big business to win Union Party favor
    • Republicans attacked him for creating a “planned economy”
    • Roosevelt won easily
  • Voter Changes
    • For the first time, African Americans in the North voted for a Democrat
    • A shift in loyalty that continues today
  • Determination Turns to Disaster
    • Proposed plan to reorganize the court system
    • Gave the president power to:
      • Appoint new judges
      • Expand supreme court by up to 6 justices
    • To make courts more “efficient”
    • People saw it as an attempt to “pack” the Supreme Court with support for Roosevelt
    • Threatened balance of power
    • Even supporters turned against him
  • Moving Forward
    • 1937 Farm Tenancy Act: gave sharecroppers and tenants a chance to buy land of their own
      • A group hurt by the cutbacks of the AAA
    • Supreme Court ruled in favor of many New Deal programs
      • Law requiring minimum wage for workers
      • Wagner Act
      • Social Security plan
  • 1937 - Another Downturn
    • Stock market dropped, 2 million jobs lost
    • Wanted to cut spending b/c of growing deficit
      • Deficit: when government spends more money than it receives through taxes or other income
    • Instead, sought money to help unemployed
      • Supported by John Maynard Keynes - economist who argued that deficit spending could provide jobs and stimulate the economy
    • Economy started to rebound by summer 1938
  • For Next Class…
    • Review