Second New Deal

Question 1

What were Roosevelt’s reason for a second new deal?

Answer 1

• Mood in Congress for action and Roosevelt wanted to prevent this
• Roosevelt increasingly frustrated with Supreme Court: beginning to overturn New Deal legislation
• Increasingly frustrated with wealthy and big business who were opposing him more and more

Question 2

What acts did he pass in the second new deal?

Answer 2

• Works Progress Administration
• Wagner-Connery National Labor Relations Act (Wagner Act) 1935
• Social Security Act, Aug 1935
• The Banking Act, Aug 1935

Question 3

What did the WPA do?

Answer 3

• Works Progress Administration
• recruited people for public works projects
• At any one time had ~ 2 million employees, by 1941 20% of nation’s workforce found employment in it
• Wages approx $52 per month: less than going rate in industry
• WPA not allowed to compete for contracts with private firms
• built 1000 airport landing fields, 8000 schools and hospitals and 12,000 playgrounds
• engaged in some large scale projects e.g building Ford Knox in Kentucky

Question 4

Why was Roosevelt reluctant to become involved in labour relations legislation?

Answer 4

• Mistrust of labour unions in USA
• particularly among conservative politicians such as Southern Democrats who’s support he needed
• no wish to become champion of unions and upset big business further

Question 5

What did the Wagner Act do?

Answer 5

• Wagner-Connery National Labor Relations Act 1935
• guaranteed workers right to collective bargaining through unions
• could choose union through secret ballot + New 3-man National Labor Relations Board set up - ensure fair play
  -Employers forbidden to use unfair practices such as discrimination against unionists
• first act that gave unions right in law
• R didn’t see it in this way

Question 6

What was the SSA?

Answer 6

• Social Security Act: Aug 1935
• first federal measure of direct help as a workers right
• provided old age pensions to be funded by employer and employee contributions
• unemployment insurance to be paid for by taxes levied on both employers and employees: (state controlled)

Question 7

Disadvantages of SSA

Answer 7

• Social Security Act
• generally inadequate to meet needs of the poor
• pensions paid at min of $10 and a max of $85 per month
• not to be paid until 1940
• Unemployment benefit max $18 per week for 16 weeks only- low and limited period

Question 8

How successful was the SSA

Answer 8

• Major break with American government tradition
• never before a direct system of national benefits
• had to be self financing - so not relief
• pensions not paid at a flat rate but according to how much worker contributed
• unemployment benefit low and paid for limited period

Question 9

What act did Roosevelt pass in relation to banking in second new deal?

Answer 9

• The Banking Act: Aug 1935
• Felt Wall Street exercised too much power - sought to repeal 1913 Federal Reserve Act
• Control of banking system was removed from private banks to central government
• centre of financial management shifted from New York to Washington

Question 10

Overall what did the second new deal do?

Answer 10

• The banking system was centralised
• Labour unions were given a legal voice
• The Social Security Act created the first national system of benefits
• Further developments of existing policies e.g with the creation of the WPA to aid both relief and recovery