The Second New Deal

THE SECOND NEW DEAL Chapter 12 Section 2 US History THE SECOND NEW DEAL • LAUNCHING THE SECOND NEW DEAL • MAIN IDEA – By 1935, the New Deal faced political and legal challenges, as well as growing concern that it was not ending the Depression LAUNCHING THE SECOND NEW DEAL • Roosevelt and Hopkins (head of FERA) openly supported the New Deal policies – Needed support and effective speakers to defend against opposition to policies • Economy only showed slight improvement after 2 years of Roosevelt’s policies – Even though created 2 million new jobs, nations income only half of income from 1929 LAUNCHING THE SECOND NEW DEAL • Criticism from left and right – Roosevelt got criticism from both political parties • Right wing believed expanded Fed. Gov’t at expense of states’ rights • Right had always opposed new deal, but increased by 1934 – To pay for programs used “deficit spending” and many alarmed by growing deficit in gov’t – August 1934 Business and anti-New Deal politicians created “American Liberty League” • Organize opposition to New Deal • ‘teach necessity of respect for the rights of person and property LAUNCHING THE SECOND NEW DEAL – Left also criticized New Deal for not doing enough – Wanted more gov’t intervention to shift wealth from rich to middle/poor Americans • Huey Long – He was most serious threat to New Deal – Governor of Louisiana • Improved schools, hospitals and built roads/bridges – Created a large corrupt political machine, 1930 elected to senate – Attacked rich and was a great public speaker (lots of support) – 1934 created Share Our Wealth Society and announced run for President in 1936 LAUNCHING THE SECOND NEW DEAL • Father Coughlin – Catholic Priest from Detroit with radio show • 30-45 million listeners – At first supported New Deal but wasn’t fast or radical enough – Wanted national banking system and inflated currency – 1935 organized National Union for Social Justice • Worried might become new political party LAUNCHING THE SECOND NEW DEAL • The Townsend Plan – Third challenge to Roosevelt… Francis Townsend – Wanted Fed. Gov’t pay citizens over 60 a pension of$200 a month • Have to retire and spend entire check each month – Thought increase spending and free up new jobs for unemployed – Got millions of supporters, especially older Americans • With all opposition from other directions Roosevelt worried about re-election LAUNCHING THE SECOND NEW DEAL • THE WPA – Roosevelt disturbed wasn’t rapid economic growth with first New Deal programs – 1935 launched new programs (Second New Deal) – Works Progress Administration (WPA) was one of new programs – Largest public works program (run by Hopkins) • Between 1935-1941 spent $11 billion • Had 8.5 million workers construct 650,000 miles of roads: 125,000 public buildings and 124,000 bridges: 853 airports LAUNCHING THE SECOND NEW DEAL • WPA – Controversial program: Federal Number One • For artists, musicians, theatre people and writers – Paid for artists to create murals and sculptures, musicians to create symphony orchestras – Paid for playwrights, actors and directors to create and put on plays – Funded writers who recorded the stories of former slaves LAUNCHING THE SECOND NEW DEAL • The Supreme Court’s Role – 1935, Supreme Court struck down the National Recovery Administration – Congress could not delegate its legislation powers to executive branch (NRA codes unconstitutional) – Roosevelt worried court could strike down the rest of the New Deal – Another reason why created new policies and programs • Keep voter support for reelection THE SECOND NEW DEAL • REFORMS FOR WORKERS AND SENIOR CITIZENS • MAIN IDEA – Roosevelt asked Congress to pass the Wagner Act and Social Security to build support among workers and older Americans REFORMS FOR WORKERS AND SENIOR CITIZENS • When Supreme Court struck down NRA also got rid of workers right to unions – Roosevelt wanted vote of working people so had to get unions reinstated – Also believed that unions would help end the Great Depression • High union wages would give workers more money to spend, boosting the economy – Opponents thought high wages would force companies higher prices and hire fewer people REFORMS FOR WORKERS AND SENIOR CITIZENS • The Wagner Act – July 1935 Congress passed National Labor Relations Act (aka Wagner Act) – Guaranteed workers the right to organize unions and bargain collectively – Set up “National Labor Relations Board” (NLRB) • Organized factory elections by secret ballot to determine if workers wanted a union. – Also set up “binding arbitration” • Dissatisfied union members could take complaints to a neutral party who would decide on the issues REFORMS FOR WORKERS AND SENIOR CITIZENS • The CIO is formed – Wagner act led to burst of labor activity – John L. Lewis organized United Mine Workers and worked with other unions to organize industrial unions – Formed Committee for Industrial Organization (CIO)1935 • Organize unions that included all workers, skilled and unskilled in an industry • Focused on Auto and steel industries first because biggest and not organized REFORMS FOR WORKERS AND SENIOR CITIZENS • Sit-Down Strikes – Union organizers used new tactics like “sit-down strikes” • Stopped work inside factories and refused to leave • Prevents hiring of replacement workers – First used effectively with rubber workers, became common CIO tactic – UAW (United Auto Workers) used against General Motors • December 31 1936 Flint Michigan, stopped factory for weeks while family and friends brought workers food and provisions through windows • Violence broke out in Flint when police launched tear gas in one of the factories, wounded 13 but strike held • February 11 1937 GM finally recognized UAW as employees sole bargaining agent (very powerful) REFORMS FOR WORKERS AND SENIOR CITIZENS – U.S. Steel decided it did not want to repeat GM strike at their companies so March 1937 recognized CIOs steel workers union • Smaller companies didn’t follow and suffered bitter strikes until 1941 when union recognized across country – By late 1930s workers in other industries had gained union recognition • Membership tripled (3 million 1933, and 9 million 1939) – 1938 CIO changed name to “Congress of Industrial Organizations” • A federation of industrial unions REFORMS FOR WORKERS AND SENIOR CITIZENS • Social Security – After Wagner, Congress worked on passing “Social Security Act” • Goal: Provide some security for older Americans and unemployed workers – Roosevelt spent months preparing bill, viewed mainly as insurance measure • Right to benefits because paid premiums in form of a tax to federal gov’t – Also provided modest welfare payments to other needy people • People with disabilities and poor mothers with dependent children REFORMS FOR WORKERS AND SENIOR CITIZENS – Main part of act was monthly benefits people could collect at 65 when stopped working – Another important part, unemployment insurance • Temporary income to unemployed while looking for work – Roosevelt thought that since people receiving benefits had already paid for them so nothing congress could do to stop once in place • Didn’t realize that in later years congress would borrow from social security fund to pay for other programs without raising payroll deductions to cover benefits – Even though helped many people, at first didn’t help the neediest people : Farm and domestic workers – Established principle that federal gov’t should be responsible for those who, through no fault of their own, were unable to work REVIEW QUESTIONS 1. What criticisms prompted the Second New Deal? 2. How did the Social Security Act protect workers? 3. What is deficit spending? 4. What does WPA stand for? 5. What is the official name for the Wagner Act?.

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