AIM: To what extent was the Second New Deal more radical than the first New Deal?

Criticism of the New Deal Business – Complained about interference with free enterprise and gov’t spending. Radicals – Complained that not enough was being done to help the poor. Supreme Court – Believed that the New Deal was basically unconstitutionally.

The “Second New Deal” Was an attempt by Roosevelt to overcome his opponents and increase his support in preparation for the election of Characteristics: Marked a return to an anti-trust policy for the government Basically anti-business

Important Legislation National Labor Relations Act (Wagner Act) – Protected workers’ rights to join unions and bargain collectively. Works Progress Administration – Created jobs for the unemployed. National Youth Administration – Provided part-time jobs and financial aid for students. Social Security Act – Insurance for the elderly, unemployed and handicapped. Revenue Act – Increased corporation and inheritance taxes.

Important Legislation (con’t) Resettlement Administration – Provided housing for the poor in rural areas. Rural Electrification Administration – Provided electricity for rural areas. Public Utilities Holding Company Act – Broke up giant holding companies. Banking Act – Gave the Federal Reserve Board control over “open market operations” (ex. the purchase or sale of government securities in order to enlarge or decrease the base of the money supply)

New Monetary Policy – “Pump Priming” Roosevelt’s advisers believed that when a decline in private spending caused a depression, the government must increase public spending to balance the decline. This would involve deficit spending (spending more than was collected in taxes) at first, but would eventually bring about recovery, at which time the national income would create enough revenue to balance the budget. This idea was developed further by the British economist, John Maynard Keynes in his book, General Theory of Employment.

Roosevelt and the Supreme Court (1937) Roosevelt asked Congress for the power to appoint an additional justice for each justice over seventy who refused to retire. – Critics of Roosevelt accused him of attempting to “pack” the Court with judges favorable to the New Deal. – Congress refused to pass the law, fearing it would destroy the system of checks and balances.