Unit III – A Modern Unit III – A Modern NationNation

Chapter 12 – The New DealChapter 12 – The New Deal

Section 2 – The Second New Section 2 – The Second New DealDeal

The Second New DealThe Second New Deal

The Main Idea

A new wave of government initiatives starting in 1935 resulted in some strong successes and stunning defeats for President

Roosevelt.

Reading Focus

• What were the key programs in the Second Hundred Days?

• How did New Deal programs help to revive organized labor?

• What were the key events of the 1936 election?

• Why was 1937 a troubled year for Roosevelt and the Second New Deal?

The Second New Deal The Second New Deal

(06:00)(06:00)

The Second Hundred The Second Hundred DaysDays

Emergency Relief Appropriations Act – stopped direct payments to Americans in need

Works Progress Administration (WPA) – largest peacetime jobs program in U.S. history

Second Hundred

Days

Roosevelt launched the Second New Deal in the spring of 1935.

Congress passed laws extending government oversight of the banking industry and raised taxes on the wealthy.

Congress funded new relief programs.

EmergencyRelief

Provided guaranteed, regular payments for many people 65 and older

Included a system of unemployment insurance

Social Security

The WPA (01:18) The WPA (01:18)

FDR Addresses Social Security (02:18)FDR Addresses Social Security (02:18)

The Second Hundred The Second Hundred DaysDays What were the key programs in the What were the key programs in the

Second Hundred Days?Second Hundred Days? RecallRecall – What were the provisions of the – What were the provisions of the

Social Security Act?Social Security Act? ExplainExplain – Why might critics of the first – Why might critics of the first

New Deal have favored the Second New New Deal have favored the Second New Deal?Deal?

Make JudgmentsMake Judgments – Do you think that – Do you think that Herbert Hoover would agreed or Herbert Hoover would agreed or disagreed with the quotation from disagreed with the quotation from Roosevelt’s 1935 State of the Union Roosevelt’s 1935 State of the Union Address?Address?

Second New Deal: Second One Hundred Days (03:48)Second New Deal: Second One Hundred Days (03:48)

The New Deal Revives The New Deal Revives Organized LaborOrganized Labor1. National Industrial Recovery Act (NIRA) guaranteed

workers the right to form unions and bargain collectively.– Difficult to enforce, fatally weakened by Supreme Count’s

ruling in Schechter Poultry Corporation v. United States

2. Roosevelt backed the Wagner Act, or the National Labor Relations Act (NLRA).– Outlawed a number of anti-labor practices, established the

National Labor Relations Board and gave it authority to conduct voting in workplaces to determine whether employees wanted union representation

3. The Committee for Industrial Organization (CIO) was born in 1935. – John L. Lewis led this group to break away from the American

Federation of Labor (AFL).

– The United Auto Workers (a division of the CIO) launched a successful sit-down strike in 1936.

Progress for Labor (01:53)Progress for Labor (01:53)

Reviving Organized Reviving Organized LaborLabor How did the New Deal How did the New Deal

programs help to revive programs help to revive organized labor?organized labor?

RecallRecall – Why was the NIRA – Why was the NIRA considered prolabor?considered prolabor?

ExplainExplain – What was the Nation – What was the Nation Labor Relations Board Labor Relations Board empowered to do?empowered to do?

Describe Describe – What advantage – What advantage did a sit-down strike have over did a sit-down strike have over a traditional strike?a traditional strike?

Reviving Organized Reviving Organized LaborLabor RecallRecall – What events – What events

helped establish the CIO helped establish the CIO as a major force in as a major force in American Labor?American Labor?

ContrastContrast – What was the – What was the major difference between major difference between the AFL and the CIO?the AFL and the CIO?

Roosevelt

• Passed the Rural Electrification Act, which provided electricity to millions of farmers

• Showcased his achievements: unemployment cut in half, income and business earnings were up, New Deal programs provided hope and help

• Spoke out against big business

His Critics

• Republicans argued that the New Deal was overly bureaucratic and was creating a planned economy.

• American Liberty League tried to stop Roosevelt’s attack on big business.

• Republican Alf Landon did not pose a serious threat.

The Election of 1936The Election of 1936The Results

• A tremendous victory for Roosevelt

• Alf Landon carried only two states.

• The Union Party candidate polled less than 2 percent of the popular vote.

• The Democrats again gained seats in both houses.

The Election of 1936The Election of 1936

What were the key events of the What were the key events of the 1936 election?1936 election?

ExplainExplain – Why was the Rural – Why was the Rural Electrification Act important for Electrification Act important for farmers?farmers?

IdentifyIdentify – What major shift in – What major shift in American politics took place in American politics took place in 1936?1936?

Eleaborate Eleaborate – How might the results – How might the results of the 1936 elections been of the 1936 elections been different if Huey Long had not been different if Huey Long had not been assassinated the year before?assassinated the year before?

A Troubled YearA Troubled Year

Roosevelt surprised Congress with a plan to reorganize the nation’s courts.

In the fall of 1937, the nation’s economy suffered another setback.

Although the Supreme Court began to rule in favor of New Deal legislation and the economy began to rebound in the summer of 1938, the positive feelings about Roosevelt and the New Deal had begun to fade.

The Court-Packing PlanThe Court-Packing PlanRoosevelt’s PlanRoosevelt’s Plan

Gave the president Gave the president power to appoint many power to appoint many new judges and expand new judges and expand the Supreme Court by the Supreme Court by up to six judgesup to six judges

Roosevelt argued that Roosevelt argued that changes were needed to changes were needed to make the courts more make the courts more efficient.efficient.

Most observers saw plan Most observers saw plan as effort to “pack” the as effort to “pack” the court with friendly court with friendly justices.justices.

The ResultThe Result Plan did not pass; Plan did not pass;

however, the Supreme however, the Supreme Court made some Court made some rulings that favored New rulings that favored New Deal legislation.Deal legislation.

Supreme Court upheld a Supreme Court upheld a minimum wage law in minimum wage law in Washington state.Washington state.

Court ruled in favor of a Court ruled in favor of a key element of the key element of the Wagner Act.Wagner Act.

Court declared Social Court declared Social Security plan to be Security plan to be constitutional.constitutional.

Packing the Supreme Court (02:51)Packing the Supreme Court (02:51)

The Nation’s Economy

Economic Theory

• 1937 witnessed an economic downturn that began with a sharp drop in the stock market. By the end of the year, about 2 million Americans had lost their jobs.

• Roosevelt had hoped to cut back on government spending, for he feared the growing federal budget deficit.

• As unemployment rose during 1937 and 1938, the government spent large sums of money to help the unemployed.

• British economist John Maynard Keynes argued that deficit spending could provide jobs and stimulate the economy.

• The economy did begin to rebound in the summer of 1938.

Economic Downturn of Economic Downturn of 19371937

The Government Responds to Depression (01:38) The Government Responds to Depression (01:38)

A Troubled YearA Troubled Year

Why was 1937 a troubled year for Why was 1937 a troubled year for Roosevelt and the Second New Deal?Roosevelt and the Second New Deal?

IdentifyIdentify – What was the Farm Tenancy Act? – What was the Farm Tenancy Act? SummarizeSummarize – What was the result of – What was the result of

Roosevelt’s attempt to reorganize the Roosevelt’s attempt to reorganize the courts?courts?

Explain Explain – How did Roosevelt respond to – How did Roosevelt respond to the new wave of unemployment in late the new wave of unemployment in late 1937 and early 1939.1937 and early 1939.

Make JudgmentsMake Judgments – Do you think Roosevelt’s – Do you think Roosevelt’s court packing attempts affected the court packing attempts affected the Supreme Court rulings in favor of the Supreme Court rulings in favor of the Wagner and Social Security Act? Why or Wagner and Social Security Act? Why or Why not?Why not?