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Criticism of New Deal programs as ineffective prompted FDR to launch a 2nd New Deal

Many of the programs were also declared unconstitutional by the Supreme

Court

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The Second New Deal

■The 1st act of the 2nd New Deal was Works Progress Admin (WPA), the most comprehensive, direct-assistance program of the New Deal

–The national gov’t hired 10 million Americans in an attempt to stimulate the economy

–WPA created building projects, funded artists, & pumped $10 billion into the economy

WPA helped but never employed enough people to stimulate consumer purchase

power—it made the Depression bearable

The first major legislation that Roosevelt and Congress passed in the Second New Deal—in response to the critics—was the Works Progress Administration (WPA). Created in 1935, the WPA was an effort to appease the “Longites” who clamored for more direct assistance from the federal government. The WPA was similar to the Public Works Administration of the First New Deal, this time hiring nearly 10 million Americans to construct new public buildings, roads, and bridges.

In January 1935, Congress created the Works Progress Administration (WPA). Roosevelt's program employed 3.5 million workers at a "security wage"--twice the level of welfare payments, but well below union scales. Roosevelt, again, turned to Harry Hopkins to head the new agency. Since the WPA's purpose was to employ men quickly, Hopkins opted for labor-intensive tasks, creating jobs that were often makeshift and inefficient. Jeering critics said the WPA stood for "We Piddle Along," but the agency built many worthwhile projects. In its first five years alone, the WPA constructed or improved 2,500 hospitals, 5,900 schools, 1,000 airport fields (including New York's LaGuardia Airport), and nearly 13,000 playgrounds. By 1941 it had pumped $11 billion into the economy.

The WPA's most unusual feature was its spending on cultural programs. Roughly five percent of the WPA's spending went to the arts. While folksingers like Woody Guthrie honored the nation in ballads, other artists were hired to catalog it, photograph it, paint it, record it, and write about it. In photojournalism, for example, the Farm Security Agency (FSA) employed scores of photographers to create a pictorial record of America and its people. Under the auspices of the WPA, the Federal Writers Project sponsored an impressive set of state guides and dispatched an army of folklorists into the backcountry in search of tall tales. Oral historians collected slave narratives, and musicologists compiled an amazing collection of folk music. Other WPA programs included the Theatre Project, which produced a live running commentary on everyday affairs; and the Art Project, which decorated the nation's libraries and post offices with murals of muscular workmen, bountiful wheat fields, and massive machinery.

Valuable in their own right, the WPA's cultural programs had the added benefit of providing

work for thousands of writers, artists, actors, and other creative people. In addition, these programs established the precedent of federal support to the arts and humanities, laying the groundwork for future federal programs to promote the life of the mind in the United States.

In 1939, a Gallup Poll asked Americans what they liked best and what they liked worst about Franklin Delano Roosevelt's New Deal. The answer to both questions was: “the WPA, the Works Projects Administration.”

Work crews were criticized for spending days moving leaf piles from one side of the street to the other. Unions went on strike to protest the program's refusal to pay wages equal to those of the private sector. President Ronald Reagan, a staunch critic of large-scale government programs, was one of the WPA's defenders, however. "Some people," he said, "have called it boondoggle and everything else. But having lived through that era and seen it, no, it was probably one of the social programs that was most practical in those New Deal days."

Approximately five percent of its budget was devoted to the arts. WPA alumni include writers Saul Bellow, John Cheever, Ralph Ellison, and Richard Wright, the artist Jackson Pollack, and actor and director Orson Welles.

The WPA was not especially efficient. In Washington, D.C., construction costs typically ran three-to-four times the cost of private work. Although, this was intentional. The WPA avoided cost-saving machinery in order to hire more workers. At its peak, the WPA spent $2.2 billion a year, or approximately $30 billion annually in current dollars.

The Works Progress Administration

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National Labor Relations Act (Wagner Act) original version (NIRA) was declared

unconstitutional

Created the National Labor Relations Board (NLRB)

it legitimized unions and labor tactics such as collective bargaining & collective action (strikes, etc...)

it outlawed BLACKLISTS & other anti-union practices

Investigates alleged unfair labor practices (i.e. complaints made by workers against the workplace)

Some 2nd New Deal Programs

Resurrected piecemeal - 7(a) became Wagner Act,

forbade company unions, compels negotiation with

majority chosen union

• Established the NLRA (the regulatory agency)

• Unionization goes from 7% to 33% by 1950s

• No restrictions or rules place on unions

• Eventually no sit down strikes (according to NLRB)

• Businessmen got together, and agreed to

industry standards that would be enforced by law

• The gains by unions were eventually drastically

weakened by the Taft-Hartley Act, which

allowed states to ban “closed shops” –

which, more or less, meant no unions

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Fair Labor Standards Act 1938

Applies to employees engaged in interstate commerce

Created a minimum wage (40 cents/hr)

Prohibited child labor

Guaranteed “time and a half” for overtime (40+ hours)

Created maximum hour laws (aimed at helping non-unionized workers)

There have been several subsequent amendments to this Act:

To protect gender

To protect race

Guarantee sick leave

Allow additional vacation time in exchange for overtime

Some 2nd New Deal Programs

The counterpart to the Wagner Act -- for farmers -- was the AAA (from

the 1st New Deal)

Pay farmers to not farm

Got a new AAA during 2ND

Didn’t really help (in terms of increasing crop prices/farmers

salaries)

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Give Me Liberty!: An American history, 3rd EditionCopyright © 2011 W.W. Norton & CompanyTable 22.1 Labor Union Membership

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Social Security Act (1935)- feared by opponents as "creeping

socialism“ unemployment insurance old age pensions Funded through payroll taxes (called

FICA) Definition of “employment” favored

white male workers Jobs not covered:

Domestic service

Farmers

Many teachers

Librarians

Result – half the working population not covered

Some 2nd New Deal Programs

■Liberal critics argued that SS did not do enough

■Conservative critics argued that SS violated individualism & self-reliance

■Social Security created America’s 1st welfare program to help individuals

Not enough – didn’t cover women and african americans – (FDR didn’t want to

lose southern Democrats) – he also had the workers fund it themselves so it

couldn't be effectively repealed by a later Republican congress

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New Deal helped in stimulating the U.S. economy, andWWIIpushed unemployment to zerounemployed found jobs in munitions factories and the military as the U.S. became the ARSENAL OF DEMOCRACY

New Deal saw expansion of U.S. gov't in :1) economy - government

intervention/deficit spending

2) social reform - welfare state - after this point the U.S. gov't was expected to play a role in any economic crisis

so FDR saved capitalism by injecting some socialism

The End of the

New Deal

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End of the New Deal■New Deal reached its high point

when FDR was re-elected in 1936

■FDR’s experienced more setbacks in his 2nd term than is 1st term but he still remained a popular leader

The 1936 election saw the birth of a new Democratic coalition that would last for

30 years: South, West, urban, labor, ethnic groups, blacks, & the poor

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Unemployment, 1929-1942

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The Impact of the

New Deal

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The Impact on Women

■The New Deal brought few economic benefits to women:

–The New Deal allowed for unequal wages; Social Security, the NRA, & minimum wage laws offered little help for women

■But, women did see gains in gov’t:

–The 1st female cabinet member, Senator, ambassadors, & judges were appointed under FDR

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The Impact on African-Americans

■The New Deal did little for blacks:

–Racism & segregation remained strong during the Depression

–The NRA allowed lower wage scales for black workers; The AAA allowed for the eviction of sharecroppers & tenant farmers

–Minimum wage & SS did not apply to farmers & domestic servants (65% were black)

AAA is a “continuation of the same old raw deal”

Blacks experienced 50% unemployment rate

Blacks were the last hired & first fired

The Impact on African-Americans

■Despite the inequalities of the

New Deal, blacks supported FDR:

–FDR hired African-Americans to

key gov’t positions

–Eleanor Roosevelt spoke out

against racial discrimination

–The RFC brought assistance to

40% of unemployed blacks

through the WPA

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The Impact on Mexican-Americans■Mexican-Americans fared even

worse than African-Americans:

–The Dust Bowl led to a flood of whites into the agricultural fields in the southwest

–Congress created immigration restrictions & allowed for the deportation of illegal residents to reduce state welfare payments

–Received few New Deal benefits

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