In-Depth Notes on the Second New Deal and Its Critics

Introduction to the Second New Deal
  • FDR's Confidence & Political Context
    • Following the success of the First New Deal and the Democratic sweep in the 1934 elections, Franklin D. Roosevelt (FDR) felt empowered.
    • With Democratic control of both the House and Senate, FDR initiated the Second New Deal, focusing on reform rather than just relief.
The Two Deals Explained
  • First New Deal
    • Aimed primarily at providing immediate relief, particularly in banking and job creation.
  • Second New Deal
    • Shifted focus to longer-term reforms, addressing the root causes of the economic crisis.
    • As issues were somewhat mitigated, criticism arose, leading to challenges from various fronts.
Critics of the Second New Deal
  • As FDR's actions during the First New Deal led to some recovery, critics emerged:
    • Father Charles Coughlin
    • A Catholic priest from Michigan, known for his influential radio program with over 30 million listeners.
    • Founded the National Union for Social Justice (NUSJ), advocating for anti-capitalist reforms, like free silver coinage and against national banks.
    • Criticized FDR as being part of the capitalist elite and espoused anti-Semitic views.
    • Dr. Francis Townsend
    • Proposed the Townsend Plan, advocating for a monthly pension of $200 for those over 60, with the aim of providing financial security.
    • His movement gained traction, leading to the establishment of over 7,000 Townsend clubs nationwide by 1936.
    • Senator Huey P. Long
    • From Louisiana, introduced the "Share Our Wealth" program targeting the rich to provide income and land to the poor.
    • Advocated for a guaranteed minimum annual income of $2,500 and promised 5,000 acres of estate to every household, questioning the feasibility and legality.
FDR's Response to Critics
  • FDR’s strategy involved targeting demographic groups affected by these criticisms, reinforcing his legitimacy as a leader.
    • Political Tactics
    • Aimed at addressing the needs of labor, farmers, and disenfranchised communities while countering the narratives of critics.
Creation of the Welfare State
  • Gradual implementation of programs aimed at economic reform and support.
    • Introduced significant initiatives during the Second New Deal:
    • Works Progress Administration (WPA)
      • Launched in May 1935, provided jobs to 2.5 million people, focusing on utilizing various skill sets (e.g., artists created murals).
    • Social Security Act
      • Although passed later, it aimed to create a safety net for the elderly, based on tax contributions throughout their working lives.
      • Original eligibility was set at age 60, now generally at 67, reflecting changing demographics.
    • National Labor Regulation Act/Wagner Act
      • Empowered labor unions by affirming workers' rights to organize and negotiate without employer interference.
      • Established the Labor Relations Board to supervise union elections and maintain fair practices in labor relations.
Conclusion: Impact of the Reforms
  • FDR’s response to criticism and implementation of the Second New Deal fostered the emergence of a welfare state, providing necessary support structures.
  • Key Takeaways:
    • The Second New Deal embodied a shift from immediate relief to structural reforms, shaping labor laws and social welfare for future generations.