Second New Deal - 1938 notes

The Second New Deal : 

The Second New Deal Why did we need a Second New Deal?

The Second New Deal – A further turn to the left… why? : 

The Second New Deal – A further turn to the left… why? Social Security Soil Conservation Act Revenue Act (Wealth Tax) 2nd AAA Rural Electrification Act

Social Security : 

Social Security 1935 – For the first time, the gov’t accepted direct responsibility for meeting basic needs of its citizens Instituted a pension plan and survivors’ benefits for elderly, orphaned, and those injured in industrial accidents Many did not qualify, especially minority groups

1936 Soil Conservation Act : 

1936 Soil Conservation Act Required farmers to reduce the acreage of the same crops the AAA had previously paid them not to plant. Urged farmers and ranchers voluntarily to plant ground cover vegetation to protect vulnerable soils rotate crops and allow fields to occasionally lie fallow build terraces and use contour plowing to retain soil moisture Avoid planting on highly erodible land

Revenue Act of 1935 : 

Revenue Act of 1935 Increased taxes on the incomes of wealthy corporations and individuals Relatively affected a small number of people, and did not dramatically expand the government’s revenues Frightened and upset business leaders “This is a hell raiser, not a revenue raiser.”

Second AAA of 1938 : 

Second AAA of 1938 Established loan and crop storage programs Provided conservation payments for groups who restricted production Established a system of crop insurance Provided mandatory production controls Basically, had a permanent role in supporting farm prices and incomes

Rural Electrification Act of 1936 : 

Rural Electrification Act of 1936 Enabled people to obtain electricity without utility companies Helped eliminate corruption and inefficiency in the utility industries and reduced consumers costs by relying mostly on farmer-owned cooperatives along the lines of the TVA experiment Farmers began buying radios, irons, refrigerators, etc.

The Road to ‘36 : 

The Road to ‘36 FDR Supported by labor Supported by African Americans Supported by 3rd party voters Supported by the “New Immigrants” Supported by the elderly Supported by the poor Supported by farmers  Al Smith: “No one shoots at Santa Claus”

The Road to ‘36 : 

The Road to ‘36 Alfred Landon Balanced the budget of his state in an era of unbalanced budgets Poor radio voice/poor public speaking skills Condemned the New Deal Democrats cried “Remember Hoover!”

The Election of 1936 : 

The Election of 1936

Remember 1928? : 

Remember 1928?

The New Deal in Disarray : 

The New Deal in Disarray 1936 Election – FDR has the mandate 1. Court Packing Scheme 2. “Roosevelt Recession” 3. 1938 Congressional Election

Court Packing Scheme : 

Court Packing Scheme FDR gets overconfident and goes after the “Nine old men” on the Supreme Court Ultra conservative 6 of 9 were over 70 FDR had appointed none of these men In 1937, FDR wanted to add new Justices to the Supreme Court for every member over 70 who would not retire. He claimed the Court was “far behind in its work.”

FDR fails to pack the Court : 

FDR fails to pack the Court Congress and the nation were appalled by FDR’s scheme to “pack” the Court with his “dictator bill” What was happening in Germany and Italy in the 1930’s? This was FDR’s first major legislative defeat at the hands of his own party in Congress. (Thanks to a number of deaths and resignations) He eventually appointed a total of 9 members – the clock unpacked the court. Only one New Deal law was passed after the Court-packing scheme – the Fair Labor Standards Act of 1938

Fair Labor Standards Act of 1938 : 

Fair Labor Standards Act of 1938 Set up minimum wage and maximum hour levels (40 hours/week) Labor under the ages of 16/18 was forbidden Opposed by many industrialists, especially Southern textile workers Excluded workers in the agricultural, service, and domestic workforce, i.e. many African Americans, Hispanics, and women Reinforced FDR’s support of labor “FDR wants you to join a union!”

“Roosevelt Recession” : 

“Roosevelt Recession” Employment causes more employment In 1937, FDR thinks the economy has started to work again so he has the WPA hand out thousands of pink slips. The problem…. Unemployment causes more…? Unemployment!  Recession

Unemployment Spikes : 

Unemployment Spikes

1938 Congressional Election : 

1938 Congressional Election FDR pushes to remove increasingly conservative Democrats from Congress. After the Court Packing “dictator bill” and the “Roosevelt recession,” FDR can’t push his weight around anymore. All of the conservative Democrats won in (congressional) election of 1938.

Election of 1940 : 

Election of 1940 In the wake of the Court packing scheme, recession, and Congressional election, why does FDR win in 1940?

Legacy of the New Deal : 

Legacy of the New Deal 1938 – CIO (Congress of Industrial Organizations) breaks from the AFL (American Federation of Labor) AFL – Primarily organized skilled labor CIO – First formal convention met in PITTSBURGH – led by John L. Lewis Organized according to industry, not skill Included the unskilled masses Flint Sit Down Strike of 1937