Second New Deal

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  • Second New Deal

    1. 1. The Second New Deal The New Deal 1933-1940
    2. 2. Questions of the Day <ul><li>What key programs were created in the Second Hundred Days? </li></ul><ul><li>Why did critics of the first New Deal favor the Second New Deal? </li></ul><ul><li>What was the National Labor Relations Board empowered to do? </li></ul><ul><li>What is the advantage of a sit-down strike vs. a traditional strike? </li></ul><ul><li>What were the major differences between the AFL and the CIO? </li></ul><ul><li>How did the election of 1936 show support for the New Deal? </li></ul><ul><li>What events made 1937 a troubled year for President Roosevelt? </li></ul>
    3. 3. The Second Hundred Days <ul><li>Election of 1934, 3/4 of Congress = Democrats </li></ul><ul><li>Courts kept finding parts of New Deal unconstitutional </li></ul><ul><li>Economy wasn’t recovering </li></ul><ul><li>People wanted more </li></ul>
    4. 4. The Second New Deal <ul><li>Spring 1935 - Roosevelt launched the Second New Deal </li></ul><ul><ul><li>During time called Second Hundred Days </li></ul></ul><ul><ul><li>Extended government oversight of banks </li></ul></ul><ul><ul><li>Raised taxes on the wealthy </li></ul></ul><ul><ul><li>Funded new relief programs </li></ul></ul>
    5. 5. Works Progress Administration <ul><li>Roosevelt believed people should work for pay </li></ul><ul><li>1935 - Created Work Progress Administration (WPA) </li></ul><ul><ul><li>Largest peacetime jobs program in US history </li></ul></ul><ul><ul><li>Employed 3.4 million formerly jobless </li></ul></ul><ul><ul><li>Built roads, subways, airports, zoos </li></ul></ul><ul><ul><li>Funded artists, writers, actors, composers </li></ul></ul><ul><li>Earning a paycheck vs. getting a handout lifted people’s spirits </li></ul>
    6. 6. Social Security <ul><li>August 1935 passed Social Security Act </li></ul><ul><ul><li>Created a pension (guaranteed, regular payments) for people 65+ </li></ul></ul><ul><ul><ul><li>Retirees didn’t have to fear hunger, homelessness if too old to work </li></ul></ul></ul><ul><ul><li>Provided unemployment insurance </li></ul></ul><ul><ul><ul><li>Gave people who lost jobs financial support while they looked for work </li></ul></ul></ul>
    7. 7. Social Security <ul><li>Response to critics that wanted help for older Americans </li></ul><ul><li>Passed new taxes to fund the program </li></ul><ul><ul><li>Taxed workers and employers </li></ul></ul><ul><ul><li>Didn’t want to increase taxes too much, so many people were left out </li></ul></ul>
    8. 8. Reviving Organized Labor <ul><li>NIRA moved organized labor forward </li></ul><ul><ul><li>Allowed to form unions, bargain collectively </li></ul></ul><ul><li>Businesses ignored new rights of laborers </li></ul><ul><li>Unions lost numerous strikes in 1934 </li></ul><ul><ul><li>Labor related violence increased </li></ul></ul><ul><li>NIRA weakened in Schechter vs. U.S. </li></ul>
    9. 9. The Wagner Act <ul><li>Roosevelt supported the Wagner Act </li></ul><ul><ul><li>aka National Labor Relations Act </li></ul></ul><ul><ul><li>Outlawed anti-labor practices </li></ul></ul><ul><ul><li>Established National Labor Relations Board (NLBR) </li></ul></ul><ul><ul><ul><li>Conduct voting in workplaces to determine whether employees wanted union representation </li></ul></ul></ul><ul><ul><ul><li>Require businesses to accept voting results </li></ul></ul></ul><ul><li>Organized labor membership soared </li></ul>
    10. 10. AFL vs. CIO <ul><li>American Federation of Labor </li></ul><ul><li>Collection of smaller unions of skilled workers </li></ul><ul><li>Organized by their specific craft </li></ul><ul><li>Looked down on unskilled workers </li></ul><ul><li>Committee for Industrial Organization </li></ul><ul><li>Started by John L. Lewis </li></ul><ul><ul><li>Broke away from AFL </li></ul></ul><ul><ul><li>Fiery speaker, organizer </li></ul></ul><ul><li>Mostly unskilled workers </li></ul>
    11. 11. GM Sit-Down Strike <ul><li>1936 - United Auto Workers (part of CIO) launch sit-down strike at GM plant in MI </li></ul><ul><ul><li>Workers required to stay day and night inside the factory until dispute is resolved </li></ul></ul><ul><li>Why is this more difficult to deal with? </li></ul>
    12. 12. GM Sit-Down Strike <ul><li>State government refused to help </li></ul><ul><li>Shutdown cost GM millions per week in sales </li></ul><ul><li>Workers prevailed & after 6 weeks, GM gave in </li></ul><ul><ul><li>Huge victory for labor and CIO </li></ul></ul><ul><ul><li>Recognized CIO as major force in organized labor </li></ul></ul><ul><li>Unions continued to grow </li></ul><ul><ul><li>By 1940, 1/4 of American workforce belonged to unions </li></ul></ul>
    13. 13. Rural Electrification Act <ul><li>Created the Rural Electrification Administration </li></ul><ul><li>Loaned money to farm cooperatives & other groups to bring electricity to rural dwellers </li></ul><ul><li>Under REA the number of rural homes with electricity grew from 10% to 90% in 10 years </li></ul>
    14. 14. Roosevelt Re-elected <ul><li>Campaigned on solid record of achievement </li></ul><ul><ul><li>Unemployment decreased by half </li></ul></ul><ul><ul><li>Income, earnings increased </li></ul></ul><ul><ul><li>New Deal programs gave help and hope to millions </li></ul></ul><ul><li>No real competition </li></ul><ul><li>Roosevelt spoke against big business to win Union Party favor </li></ul><ul><li>Republicans attacked him for creating a “planned economy” </li></ul><ul><li>Roosevelt won easily </li></ul>
    15. 15. Voter Changes <ul><li>For the first time, African Americans in the North voted for a Democrat </li></ul><ul><li>A shift in loyalty that continues today </li></ul>
    16. 16. Determination Turns to Disaster <ul><li>Proposed plan to reorganize the court system </li></ul><ul><li>Gave the president power to: </li></ul><ul><ul><li>Appoint new judges </li></ul></ul><ul><ul><li>Expand supreme court by up to 6 justices </li></ul></ul><ul><li>To make courts more “efficient” </li></ul><ul><li>People saw it as an attempt to “pack” the Supreme Court with support for Roosevelt </li></ul><ul><li>Threatened balance of power </li></ul><ul><li>Even supporters turned against him </li></ul>
    17. 19. Moving Forward <ul><li>1937 Farm Tenancy Act: gave sharecroppers and tenants a chance to buy land of their own </li></ul><ul><ul><li>A group hurt by the cutbacks of the AAA </li></ul></ul><ul><li>Supreme Court ruled in favor of many New Deal programs </li></ul><ul><ul><li>Law requiring minimum wage for workers </li></ul></ul><ul><ul><li>Wagner Act </li></ul></ul><ul><ul><li>Social Security plan </li></ul></ul>
    18. 20. 1937 - Another Downturn <ul><li>Stock market dropped, 2 million jobs lost </li></ul><ul><li>Wanted to cut spending b/c of growing deficit </li></ul><ul><ul><li>Deficit: when government spends more money than it receives through taxes or other income </li></ul></ul><ul><li>Instead, sought money to help unemployed </li></ul><ul><ul><li>Supported by John Maynard Keynes - economist who argued that deficit spending could provide jobs and stimulate the economy </li></ul></ul><ul><li>Economy started to rebound by summer 1938 </li></ul>
    19. 23. For Next Class… <ul><li>Review </li></ul>

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