Key Points from The Second New Deal

The Second New Deal

In 1935, President Franklin D. Roosevelt introduced new programs to assist unions, the elderly, and the unemployed.

Deficit Spending: Government spending that exceeds revenue, leading to the need for borrowing to cover the gap.
American Liberty League: A group that organized opposition to the New Deal, promoting respect for individual rights and property.
Works Progress Administration (WPA): A key agency in the Second New Deal aimed at creating jobs through public works projects.
National Labor Relations Board: Established to enforce the rights of workers to organize and to conduct collective bargaining.
Binding Arbitration: A process in which a neutral party resolves disputes between workers and employers.
Sit-Down Strike: A form of protest where workers stop working but remain in the workplace.
Social Security Act: A landmark legislation providing old-age pensions, unemployment insurance, and welfare benefits.

April 1935: The Works Progress Administration was founded.
May 1935: The Supreme Court struck down the National Industrial Recovery Act (NIRA).
July 1935: The National Labor Relations Act (Wagner Act) was enacted.
August 1935: The Social Security Act was adopted.

Critics from Various Sides: Opposition grew from both conservative and radical factions, challenging the effectiveness and direction of the New Deal.
- From the Left: Figures like Huey Long and Father Charles Coughlin claimed the New Deal was inadequate for the poor, pushing for more radical solutions.
- From the Right: Critics felt Roosevelt's policies were too interventionist and detrimental to business, claiming the New Deal expanded federal power excessively.
Public Sentiment: As the economy showed only slight recovery and unemployment persisted above 10 million, public confidence in Roosevelt’s New Deal began to wane.

To counteract the criticism and stimulate economic recovery, Roosevelt pushed for additional reforms:
- Works Progress Administration (WPA): One of the largest New Deal agencies, dedicated to job creation, employing 8.5 million workers on various projects, including infrastructure and arts programs.
- Support for Unions: The National Labor Relations Act guaranteed the rights of workers to form unions and established the NLRB to monitor successions.
- Social Security Act: Under Franklin D. Roosevelt's leadership, this Act was established to provide financial support to the elderly, unemployed, and disadvantaged families, marking a significant step in federal welfare.

Aimed primarily to offer financial security for retired workers by providing monthly pensions starting at age 65.
Included unemployment insurance, funded through payroll taxes collected from employers and workers.
Though it helped many, it initially excluded groups like farm and domestic workers, a significant oversight impacting numerous African Americans.

Encouraged a surge in labor organization through legislation like the Wagner Act.
Rise of organizations such as the Committee for Industrial Organization (CIO) which sought to organize workers across different industries.
Sit-Down Strikes: A new tactic used effectively by workers to demand union recognition, such as the General Motors sit-down strikes in 1936.

Established the principles of a broker state, balancing various economic interests through government intervention.
Solidified the concept of a safety net, creating safeguards and relief programs as essential components of government responsibility.
The New Deal's reforms had lasting effects on American government’s role in economic and social welfare, prompting ongoing debates about the extent of federal involvement in citizens' lives.

Despite challenges and criticisms, the Second New Deal marked a crucial shift in American political and economic policies, laying the groundwork for future social welfare programs.