1. CHAPTER 13
SECTION 2
THE SECOND NEW DEAL

2. THE SECOND NEW DEAL CREATED PROGRAMS THAT
CONTINUE TO HAVE A PROFOUND IMPACT ON THE
THE SECOND NEW DEAL:
1. ADDRESSED THE PROBLEMS OF THE ELDERLY, THE
POOR AND THE UNEMPLOYED
2. CREATED NEW PUBLIC WORKS PROJECTS
3. HELPED FARMERS
4. ENACTED MEASURES TO PROTECT WORKERS
RIGHTS
DURING THIS PERIOD THE FIRST SERIOUS CHALLENGES
TO THE NEW DEAL EMERGED

3. Extending Social & Economic Reform
CONGRESS APPROPRIATED $5 BILLION
FOR NEW JOBS AND CREATED THE
WORKS PROGRESS ADMINISTRATION
(WPA)
– HEADED BY HARRY HOPKINS
– THE WPA:
1. BUILT OR IMPROVED THE NATION’S
HIGHWAYS
2. DREDGED RIVERS AND HARBORS
3. PROMOTED SOIL AND WATER
CONSERVATION
4. PROVIDED PROGRAMS IN THE ARTS
FOR DISPLACED ARTISTS

4. Extending Social & Economic Reform
AMONG THE MOST FAMOUS
PROJECTS FUNDED BY THE WPA
WERE THE SAN ANTONIO RIVER
WALK AND PARTS OF THE
APPALACHIAN TRAIL
ALL THESE PROGRAMS WERE
EXPENSIVE
– THE GROWING DEBT LED MANY
TO CRITICIZE THE PUBLIC
WORKS PROJECTS

5. Extending Social & Economic Reform
JOHN MAYNARD KEYNES
– ARGUED THAT DEFICIT
SPENDING WAS NEEDED TO
END THE DEPRESSION
– PUTTING PEOPLE TO WORK
ON PUBLIC PROJECTS PUT
MONEY INTO THE HANDS OF
CONSUMERS WHO WOULD
BUY MORE GOODS
– WOULD STIMULATE THE
ECONOMY
British Economist

6. Social Security Act of 1935 THE U.S. WAS ONE OF THE FEW INDUSTRIALIZED
NATIONS IN THE WORLD THAT DID NOT HAVE SOME
FORM OF PENSION SYSTEM FOR THE ELDERLY
THE SOCIAL SECURITY ACT:
1. CREATED A PENSION SYSTEM FOR RETIREES
2. ESTABLISHED UNEMPLOYMENT INSURANCE FOR
WORKERS WHO LOST THEIR JOBS
3. CREATED INSURANCE FOR VICTIMS OF WORK
RELATED ACCIDENTS
4. PROVIDED AID FOR POVERTY STRICKEN MOTHERS
AND CHILDREN, THE BLIND AND THE DISABLED

7. Social Security Act of 1935 FLAWS IN THE SOCIAL SECURITY ACT:
1. IT DID NOT APPLY TO DOMESTICS OR FARMWORKERS
2. WIDOWS RECEIVED SMALLER BENEFITS THAN
WIDOWERS
SOCIAL SECURITY PROVED THE MOST POPULAR AND
SIGNIFICANT OF THE NEW DEAL PROGRAMS

8. Rural Electric Administration (REA)
THE SECOND NEW DEAL
INCLUDED FURTHER HELP FOR
FARMERS
– CONGRESS ESTABLISHED THE
RURAL ELECTRIFICATION
ADMINISTRATION (REA)
– LOANED MONEY TO ELECTRIC
UTILITIES TO BUILD POWER
LINES WHICH BROUGHT
ELECTRICITY TO ISOLATED
RURAL AREAS
– BY 1950 MORE THAN 80
PERCENT OF AMERICAN FARMS
HAD ELECTRICITY

9. Labor Unions DURING THE DEPRESSION THERE WAS
AN INCREASE IN LABOR UNION ACTIVITY
THE NATIONAL LABOR RELATIONS ACT
– WAS THE MOST IMPORTANT PIECE OF
NEW DEAL LABOR LEGISLATION
– CALLED THE WAGNER ACT
– IT RECOGNIZED THE RIGHT OF
EMPLOYEES TO JOIN LABOR UNIONS
AND GAVE WORKERS THE RIGHT TO
COLLECTIVE BARGAINING
– MEANING THAT EMPLOYERS HAD TO
NEGOTIATE WITH UNIONS ABOUT
HOURS, WAGES AND OTHER
WORKING CONDITIONS

10. Labor Unions THE WAGNER ACT CREATED THE
NATIONAL LABOR RELATIONS BOARD (NLRB)
– TO LOOK INTO WORKERS’ COMPLAINTS
THE FAIR LABOR STANDARDS ACT
– PROVIDED WORKERS WITH ADDITIONAL
RIGHTS:
1. ESTABLISHED A MINIMUM WAGE
2. ESTABLISHED A MAXIMUM WORK
WEEK OF 44 HOURS
3. OUTLAWED CHILD LABOR

11. Labor Unions THE INCREASE IN UNION ACTIVITY CAME AT
THE SAME TIME AS A BITTER FEUD WITHIN
THE AMERICAN FEDERATION OF LABOR
(AFL)
– REPRESENTED SKILLED WORKERS
– FEW WORKERS IN THE MAJOR
INDUSTRIES BELONGED TO THE AFL AND
THE UNION MADE LITTLE EFFORT TO
ORGANIZE THEM

12. Labor Unions JOHN L. LEWIS – FED UP WITH THE AFL’S
RELUCTANCE TO ORGANIZE
ESTABLISHED THE
CONGRESS OF INDUSTRIAL
ORGANIZATION (CIO)
– TARGETED WORKERS WHO WERE
LOWER PRID AND ETHNICALLY
MORE DIVERSE THAN WORKERS IN
THE AFL
JOHN L. LEWIS – FED UP WITH THE ALF’S RELUCTANCE TO ORGANIZE ESTABLISHED THE CONGRESS OF INDUSTRIAL ORGANIZATION (CIO) – TARGETED WORKERS WHO WERE LOWER PRID AND ETHNICALLY MORE DIVERSE THAN WORKERS IN THE AFL

13. Labor Unions MEMBERS OF THE CIO’S UNITED AUTOMOBILE WORKERS UNION
(UAW)
– STAGED A SIT DOWN STRIKE
– WHERE WORKERS REFUSE TO
LEAVE THE WORKPLACE UNTIL A
SETTLEMENT IS REACHED
– AT A GENERAL MOTORS FACTORY
– STRIKE LASTED 44 DAYS UNTIL
GENERAL MOTORS AGREED TO
RECOGNIZE THE UAW

14. Labor Unions BY 1940 – A MILLION WORKERS BELONGED TO UNIONS
– TWICE THE NUMBER OF 1930

15. Challenges to the New Deal
FDR WON THE 1936 ELECTION WITH 61% OF THE VOTE
– WON EVERY STATE BUT MAINE AND VERMONT

16. Challenges to the New Deal
HIS GOAL FOR SECOND
TERM WAS TO CHALLENGE
THE GROUP THAT HE
CONSIDERED THE MAIN
ENEMY OF THE NEW DEAL
– THE SUPREME COURT
– IT HAD STRUCK DOWN
MANY OF THE NEW DEAL
PROGRAMS

17. Challenges to the New Deal
THE SUPREME COURT IN THE CASE
SCHECHTER POULTRY V. UNITED STATES
– RULED THAT SINCE THE PRESIDENT HAS
NO POWER TO REGULATE INTERSTATE
COMMERCE AND DECLARED THE
NATIONAL INDUSTRIAL RECOVERY ACT
UNCONSTITUTIONAL
THE COURT ALSO RULED A PART OF THE
AGRICULTURAL ADJUSTMENT ACT
– FDR EXPECTED THE COURT TO STRIKE
DOWN OTHER NEW DEAL PROGRAMS

18. Challenges to the New Deal
FDR CALLED FOR ADDING UP TO SIX
NEW JUSTICES TO THE NINE-MEMBER
COURT
– JUSTIFIED PROPOSAL NOTING THE
CONSTITUTION DID NOT SPECIFY THE
NUMBER OF JUDGES ON THE COURT
-- ADDED MANY OF THE JUSTICES WERE
ELDERLY AND OVERWORKED

19. Challenges to the New Deal
FDR WAS TRYING TO PACK THE COURT
– CRITICS ACCUSED HIM OF TRYING TO INCREASE
PRESIDENTIAL POWER AND UPSETTING THE
BALANCE BETWEEN THE THREE BRANCHES OF
GOVERNMENT
FDR MIGHT HAVE BEEN ABLE TO CONVINCE
CONGRESS TO LET HIM GO AHEAD WITH HIS PLAN
TO ADD MORE MEMBERS TO THE SUPREME
COURT BUT HE DID NOT HAVE TO
– THE COURT BEGAN TO TURN HIS WAY