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Second New Deal

Roosevelt Roosevelt was regarded as the saviour of many ordinary people Historians argue that after 1935 the New Deal became more extreme but did not reform the !"# $rustrated by the lac% of support from big business& especially when the ! 'hamber of 'ommerce attac%ed his policies in (ay 1935# !aw !upreme 'ourt as conservative and out)of)touch Reasons for the Second New Deal " response to radicalism such as *+,' 'ongressional elections returned a more radical House of Representatives such as -he $arm) .abour +arty# Roosevelt didn/t want to lose the initiative to a climate of action in 'ongress -he need to replace measures such as the NR" which the !upreme 'ourt declared unconstitutional# Realisation that small firms were crucial in economic growth and the need to support them# !ome historians argue that Roosevelt was see%ing the support of the political left# Response to new and continuing crises -he New Deal had not brought about the recovery hoped for

19350 Emergency Relief Appropriation Act April 1# !et up new agencies to provide employment through federal wor%s 1# "llocated 235#5 billion 3# 4or%s +rogress "dministration 54+"6 Had around 1 million employees& built 1777 airport landing fields& 8777 schools 9 hospitals and 11777 playgrounds# *mployed writers and photographers to record "merican life 9 culture and encouraged theatre# N:" 5National :outh "dministration6 set up to encourage education and provide part) time ;obs for students# *leanor Roosevelt encouraged women and ethnic minorities to participate in govt schemes# Resettlement Administration (RA) May 1# (erged all rural rehabilitation pro;ects into the R" and aimed to move 577777 families into more promising surroundings and new greenbelt communities 1# <nly resettled 3331 families& main reason for moving being the lac% of ;obs in existing communities& not the prospect of new ones# Rural Electrification Act May 1# "imed to build generating plants and power lines in rural areas where it was not profitable for private companies to do so# 1# =y 1931 35> of farms had electricity& from 11#?> in 193?# 33877 Revenue (Wealth) Act June 1# -o pay for reforms& perceived as an attac% on the right of "mericans to become rich 1# "imed to reduce the need for government deficit spending 3# (aximum tax on incomes over 257777 was increased from 59> to @5>& yet raised only 2157mn extra# 3# *xtra taxation would have cut spending power and delayed recovery# 5# "cted as a precedent for higher taxes during 441

?# "ngered people out of all proportion to its actual effect# Wagner- onnery National !a"our Relations Act July 1# Roosevelt remained reluctant to get involved in labour relations because of his lac% of understanding& interest and the general mistrust of labour unions in the !"# 1# =orn out of disappointment for the .abour =oard set up under the NR"# 3# 4or%ers allowed the right to collective bargaining through unions of their own choice chosen through secret ballots# 3# " National .abour Relations =oard set up to ensure fairness and forbid employers to resort to unfair practices# 5# ,n the long)term it committed federal govt to an important labour relations role# #u"lic $tility %olding ompany Act August 1# -here were problems with existing utility holding company pyramid structure& causing the actual providers to have to charge excessive rates to customers in order to survive themselves# 1# <rdered companies more than twice removed from the operating company to be bro%en up via ma%ing them register with !*' 5!ecurities *xchange 'ommission6# -hey were eliminated by 1937# 3# !*' also given control of all the companies/ financial transactions and stoc% issues# 3# -he "ct became law despite furious lobbying from involved companies# 5# Rid the system of an unfair structure Social Security Act August 1# +reviously& only 4isconsin provided any sort of unemployment benefit# 1# Roosevelt had an interest in a federal system of social security& yet this system was conservative and limited in its provision# 3# ,t provided foundations as a measure of direct help and a brea% in tradition# -he old age pensions and unemployment insurance A funded by employer 9 employee& would be controlled by federal govt and states respectively# 3# !et up assistance program for the blind& disabled and families with dependant children# 5# *ncouraged participation by a 97> exemption from payroll tax 5paid by employers for each of their employees6 ?# ,t caused reduced real wages and increased prices& which were two of the reasons for the Roosevelt Recession# @# ,nadeBuacies0 'ouldn/t meet the needs of the poor A pensions paid 217 to 285 per month& unemployment benefit was max of 218 per wee% for a max of 1? wee%s# !tates received the same amount per poor child& yet there were vast differences in what they actually received# "gricultural wor%ers& domestic servants and small)scale business employees& who needed aid the most& were excluded from the scheme# Health ,nsurance not included due to the opposition of the "merican (edical "ssociation# 4as not relief A Roosevelt refused to allow the system to be subsidised# Return dependant on the amount paid into the system# &an'ing Act August 1# ,ntended to give the federal govt control of ban%ing in the !" because it was felt that 4all !treet exercised too much power in national finance# 1# $aced powerful opposition from ban%ers& creating a compromise in the final "ct# 3# Decisions on reserve reBuirements and rediscount rates were given to the $ederal Reserve =oard& as well as the necessity for them to approve heads of $ederal Reserve =an%s# 3# "ll large ban%s see%ing federal deposit insurance were reBuired to register with the =oard and accept its authority#

Cetoed the veteran/s bonus payment and warned of wasting public funds 193?0 #residential Election 1# Roosevelt 5Democratic candidate6 ran against "lfred .andon 5Republican 'andidate6 1# .andon was dour and colourless& called D" Eansas 'oolidge/ by $ord& and had little chance of winning# 3# Roosevelt argued that his opponents were only against him after he saved them from disaster# 3# "fter Huey .ong/s assassination& the .eft formed the nion +arty supporting the candidacy of 4illiam D.iberty =ill/ .em%e& who Dhad the charisma of a deserted telephone booth/# "ccording to Roosevelt& his policies appealed to 17)15> of the electorate# 5# $ew "mericans wanted to change the system whilst Roosevelt& in the middle course& was so popular ?# Roosevelt won by ?7#8> to 3?#5># @# ,n his inaugural address in 193@ he made clear that the impoverished would be his main priority& but said little of what he would do to help them# 8# His victory was helped by the lac% of organisation amongst opponents and the Republican criticisms of policies that had helped so many# Roosevelt(s "attle with the Supreme ourt 1# During 1935 9 193? the !upreme 'ourt found 11 laws to be unconstitutional# 1# -he Dsic% chic%en/ case A where butches protested to the 'ourt that N,R" could not prosecute them for brea%ing its codes of practice A motivated Roosevelt into action as the 'ourt effectively agreed that federal govt had no right to interfere in internal state issues& despite recognising the federal govt/s right to intervene in inter)state commerce# 3# -he 'ourt proceeded to declare N,R" codes unconstitutional# -he rules implied that the federal govt could not oversee national economy except in inter)state commerce# )udiciary Reform &ill February 1# <f the 9 ;udges& none were of Roosevelt/s appointment# "s such he saw the issue of the !upreme 'ourt as unelected officials stifling the wor% of democracy& whilst the 'ourt saw their actions as halting the spread of dictatorship# 1# ,t stated that the +resident could appoint a ;ustice to replace retiring ;udges& and appoint up to ? new ;udges# 3# Roosevelt underestimated popular support for the court# ,t was also efficient and necessarily selective& and argued that more ;udges would prolong time needed for debate# 3# -he =ill was defeated @7 votes to 17& however Roosevelt did install one supporter to replace Fustice Can Devanter& who was ill and announced his retirement# 5# He did not again attempt to reform the 'ourt# 193@0 Roosevelt Recession June 1# $ederal expenditure was cut in Fune 193@ to meet Roosevelt/s belief in a balanced budget# 1# 'onseBuences *mployment fell by 13> in manufacturing industries National income fell by 13> ??> of gains made during the New Deal were lost according to the $ederal Reserve =oard# $arm prices fell by 17> $all in production was faster than during the Depression# 3# -N*' 5-emporary National *conomic 'ommittee6 was set up to investigate price fixing among large corporations& ma%ing big business a scapegoat for the collapse# ,t made little difference as by the time a report was submitted the recession was already over# 3# +eople realised the importance of big business and their benefits from *o!#

5# <pening of mar%ets by 441 helped bring about the recovery& as well as a 23#8bn relief budget# onse*uences of the Second New Deal =an%ing system centralised 'olossal power of utility holding companies was addressed Helped small businesses with attac%s on unfair competition 'reated the first national system of benefits# Developed existing policies to aid relief and recovery Helped the process of modernising rural areas of the !"# "rguably about the creation of permanent reforms rather than relief and recovery# 'rucially& there was a movement away from laisseG)faire# +roblems with agriculture0 AAA """ was run on a local level by county committees& often dominated by the most powerful landowners# "ttempts to help the treatment of "frican)"mericans were met by state condoned violence in the !outh# Roosevelt was reluctant to intervene because of his reliance on the votes of !outhern Democrats# -here was an increasing feeling that the """ only really benefited the wealthy# $arming income doubled over the 1937s& but still only reached 87> of 1913 levels# +he Dust"owl :ears of over ploughing thinned out oil& of little importance during years of heavy rain& but dry years and high winds caused topsoil to blow away# -his caused dust storms mainly in the (idwest# -he Natural Resources =oard estimated that 35mn acres of arable land had been destroyed& and the soil of a further 115mn had been exhausted# -housands lost their homes and were forced to migrate# nemployment in the effected states stood at 37>& 39> in "r%ansas# Hovernment measures 1# !et up the !oil *rosion !ervice in "ugust 1933& which encouraged new ideas such as contour ploughing to hold the soil# -est farmers were used and their evidence published to help encourage other farmers# 1# -he ''' planted trees and shelterbeds 3# 4as too little too late -here was a flood in Fanuary 193@& which made 157&777 people homeless and %illed 3777# ,n the long term the dustbowl was beneficial as it eased farming overcapacity and forced migration# .abour Relations nions wanted to exercise rights given to them by N,R" and the 4agner "ct& however many employers didn/t recognise these# (any employers such as $ord %ept union bashers on the payroll# -here was anger at the use of Dblac%leg/ labour during stri%es& especially if they were of a different ethnic group to the stri%ers# "fter the conservatism shown by the "$. 5"merican $ederation of .abour6& the ',< 5'ommittee of ,ndustrial <rganisations6 was formed& which encouraged industry based unions#

-he first battle too% place where rubber wor%ers struc% at the giant Hoodyear plant# -he nited Rubber 4or%ers/ nion subseBuently ;oined the ',<# " Dsit)in/ stri%e also occurred at Heneral (otors until the "utomobile 4or%ers/ nion 5 "46 was recognised# -he ',< achieved recognition in the automobileI steelI rubberI electricityI textile and farm implement industries by the end of 193@# nion membership rose by 3 million from 193? to 193@#