The Great Depression and the New Deal (1928-1941) Lesson 4 The New Deal Expands

Expanding New Deal Programs 2nd New Deal Addresses problems of the elderly, poor, unemployed, farmers & workers’ rights Reform – “the 3rd R” New Jobs Works Progress Administration (WPA) Built highways Funded artists to make art John Maynard Keynes Economist who favored deficit spending Government spending money Help to end depression Pump priming – put money into hands of consumers to spend money and stimulate economy

Helping Workers Works Progress Administration (WPA) Helping urban workers was critical to the success of the Second Hundred Days America’s Infrastructure Roads, Bridges, public buildings Between 1935-1943, the WPA spent $11 billion to give jobs to 8 million workers Gave people dignity Jobs, not handouts The National Youth Administration (NYA) provide education, jobs and recreation for young people Young people worked part-time jobs for their schools

THE SECOND NEW DEAL Second New Deal / 2nd 100 days Helping Farmers More extensive relief for farmers & workers Helping Farmers Soil Conservation & Domestic Allotment Act Paid farmers for cutting production of soil-depleting crops Farm Securities Administration (FSA) Helped tenant farmers become landowners Helped immigrant farmers

Aid for Workers Social Security Act Pension system for elderly Unemployment insurance Workers compensation (accidents, disabled) Rural Electrification Administration (REA) Money loaned to power companies to bring power to farmers

IMPROVING LABOR RELATIONS National Labor Relations Act (NLRA) Protected workers Collective bargaining Right to unionize National Labor Relations Board Wagner Act Fair Labor Standards Act Maximum hours a week (40) Minimum wage (25 Cents/ Hour – 45 Cents/Hr) Banned hazardous work for 18 year olds Congress of Industrial Organization (CIO) Represent lower paid, ethnically diverse workers Sit-Down Strike – GM, Flint Michigan

Labor Unions Thrive Analyze Data In general, how has the relationship between the minimum wage and the real minimum wage changed over the past 40 years? Using the graph, how can you explain this change?

Opposition to New Deal Supreme Court & New Deal Schechter Poultry v. US National Industrial Recovery Act Declared Unconstitutional – legislative power to president US V. Butler AAA unconstitutional Regulate agricultural production – reserved power to the state 1937 Recession Unemployment rose to 20% Democrats lose seats in Congress 1938 Midterm election

Analyze Graphs How did Roosevelt’s cutback on federal spending in 1937 affect the unemployment rate?