1. NEW CHALLENGES Chapter 25 Section 2

2. CRITICS OF THE NEW DEAL  Criticized by both liberals and conservatives  Thought New Deal was to slow in easing Economic troubles  Francis E. Townsend of California wanted every American over 60 years old to receive $200 a month  Charles E. Coughlin urged the gov’t to nationalize all banks and go to silver standard  Huey Long – take from the rich and give to the poor  Share-Our-Wealth program  Seize wealth from the rich through taxes and provide a guaranteed minimum income to every American Family  Assassinated in 1935  http://www.youtube.com/watch?v=hphgHi6FD8k http://www.youtube.com/watch?v=hphgHi6FD8k

3. THE SECOND NEW DEAL  Democrats win more seats in 1934 elections  Victory and pressure from liberals encourage New Deal legislation on more public works, social-security plan, and wage and hour improvement for laborers  Works Progress Administration (WPA) – help Americans find work  $5 billion budget and over next 8 years WPA employed 8.5 million people  National Youth Administration or “junior WPA”  Intended to help people between ages of 16-25

4. SOCIAL SECURITY  Social Security Act – August 1935  Contained 3 major provisions  1 st – provided unemployment insurance to workers who lost their jobs  Funds came from payroll tax on businesses  2 nd – provided pensions to retired workers older than age 65  Funds came from payroll tax on employers and a tax on employees wages  3 rd – provided payments to people with disabilities, the elderly, and the wives and children of male workers who had died

5. OTHER PROGRAMS  Rural Electrification Administration (REA)  Provides electric to isolated rural areas  Congress also passed a law giving gov’t the right to regulate the interstate production, transmission, and sale of gas and electricity  This kept utility costs low  Roosevelt passed Revenue Act in 1935  Sharply raised taxes for the nation’s richest people

6. ELECTION OF 1936  Roosevelt vs. Alfred M. Landon  Pledged to continue New Deal  Most African Americans in the North supported the Democrats  Roosevelt won every state but Maine and Vermont  28 Million votes to 17 Million to Landon  Democrats also increased their majorities in both houses of Congress

7. ROOSEVELT VS. SUPREME COURT  “Reform” Supreme Court  Angry that the court had declared several New Deal measures unconstitutional  Labeled the justices “Nine Old Men” – six were 70 or older  1937 Roosevelt asks Congress to grant him the power to appoint 1 new Justice for each of those over 70  Triggered many protests  “Court Packing” tampered with the balance of powers  Congress rejected Roosevelt’s request  By 1945 eight of the nine justices were Roosevelt appointees

8. EFFECTS OF SECOND NEW DEAL  National Labor Relations Act or Wagner-Connery Act  Guaranteed right to organize unions and to bargin collectively for better wages and working conditions  American Federation of Labor (AFL) – Skilled workers  Congress of Industrial Organizations (CIO) – organized skilled and unskilled in any given industry  GM – Sit-down strike, refused to leave management met their demands  Union membership rose nationwide from 4 million in 1936 to 9 million in 1939

9. ON STRIKE

10. FARMERS  Congress passes second AAA act in 1938.  Authorized payments to farmers who practiced conservation  Limited the amount of crops brought to market each year  Gov’t took surplus and gave farmers loans on amount of surplus crops they had stored  Farm Security Administration (FSA)  Long term low interest loans to help tenant farmers and sharecroppers buy land  Established camps where migrant farmworkers could seek shelter and medical aid

11. ROOSEVELT’S RECESSION  1936 began cutting back on relief and public works programs  By fall of 1937 factories were closing and unemployment rose  Republicans dubbed it “Roosevelt’s Recession”  $3 billion dollars given to expand WPA and restart PWA  Prevented recession from worsening  Election of 1938 critics of the New Deal will be elected  Republicans gained 7 seats in Senate and 75 in the House  Roosevelt did not propose any new reforms in 1939.  His leadership and popularity had already shifted balance of power in the federal gov’t from the legislative branch to the executive branch