Vocab List 23 -Deficit Spending -Binding Arbitration -Sit-Down Strike -Finance -Court-Packing -Broker State -Safety net

The New Deal The Second New Deal

I. Quick Recap The Great Depression: 25% of Americans out of Work Starving, Angry and Homeless Begins with Stock Market Crash → Deflation → Unemployment Herbert Hoover - Doesn't do enough FDR First 100 days - passes tons of Legislation known as “First New Deal” Fixes Banks, Farms and gets people working Supreme Court Tries to stop him but he owns them

II. 2nd New Deal A) Moves Away from Relief/Recovery ex: FICA = banks insured, CCC = young men building parks and now towards Future Economic Security B) WPA - Works Progress Administration - Largest program yet! 9 million employed to fix roads/airports/buildings/parks/bridges **Also financed the Arts - sculptures for buildings, recorded stories for library of congress, photographers, and the post office!

Video on 2nd New Deal

III. The Wagner Act Problem: 1934 alone there were 2,000 strikes including one with over 400,000 textile workers CIO - Congress of Industrial Organizations goal was to unionize all industries Auto, Steel, Coal, etc Done through Sit down strikes - chill and occupy space Solution: National Labor Relations Act Idea: Wages too low → Cant buy stuff → Economic downturn This law guaranteed right to Unionize Created NLRB - National Labor Relations Board to hear disputes over unfair labor practices

IV. Social Security Act This is the New Deal’s Crowning Achievement A) What does social security do? Unemployment Insurance Aide to disabled Aide to poor families with Children Retirement Benefits B) How is it paid? Payroll Taxes, AKA (FICA - federal insurance contribution act tax) C) This represents major change in relationship between Federal Government and U.S. Citizen Pre-ND: No hope for government to help you in time of distress Post-ND: Not a question of if but of how the Government will help.

V. New Deal’s legacy Politics FDR begins to popularize democrats - uniting jews, catholics, immigrants, african americans, unionized workers, left wing intellectuals and progressives. Did it stop depression? Somwhat…. By 1940 - 15% Still unemployed (but way better than 25% a decade before What truly stops the Great Depression? A massive spending program called World War II… Ultimate legacy: Changed our expectations of the US Government -- we expect the Government to save us.

Video on Social Security