2.3 Second New Deal Flashcards
The Wagner Act, 1935
-Congress passed the national Labour Relations Act, known after Robert Wagner
-gave trade unions basic rights
-1930s had the greatest increase in trade union membership in US history
-trade unions were major supporters of the Democratic Party
-gave the right to collective bargaining back to the union
-individual workplaces were given the right to join trade unions, following a secret ballot of their members
-the Federal gov established the National Labour Relations Board, consisting of three independent members to ensure both employers and trade unions acted correctly
The Social Security Act 1935
-was a response to Francis Townsend’s criticism of the First New Deal
-funded by equal contributions from employers and workers and would provide minimal payments to unemployed workers, the elderly and dependants of deceased breadwinners
-pensions were to be paid out at a rate between $10 and $85 a month
HOWEVER
didn’t help everyone such as farm workers, domestic servants and the self-employed
The Revenue Act, 1935
-To help pay for programmes to offer relief to the unemployed, congress passed this act
-it increased the rate of income tax from 63% to 79% of incomes over $5 million
-it raised an additional $250 million a year
-fewer than one American household in 20 paid federal income tax and only 10% of families earned more than $3,200 a year
-most Americans paid state taxes only
-also increased taxes on property
was more of a political showpiece than it was a fundamental change in the tax system.
direct response to Huey Long’s Share Our Wealth
annoyed a lot of the rich as they felt that FDR was a hypocrite as he grew up rich as well
More aid to farmers
The Resettlement Act 1935 helped relocate 45,000 farming families from the areas of Oklahoma, Texas and Kansas most badly affected by the dustbowl
The Rural Electrification Administration gave low interest loans to rural co-operatives to allow them to provide electricity
In 1930, only 10% of rural communities had electricity. By 1945, it was 40%
Opposition the Second New Deal- Socialists, communists, strikes and sit ins
-socialists and communists wanted to destroy the American economic system and make one that is fairer
-the capitalist economic system of the USA allowed private ownership of property, business, agriculture and industry
-wealth and power were concentrated with few people, such as Henry Ford, the Rockefeller’s and the Du Ponts
-large gap between the rich and the poor
-one third of the USA was still poor in 1937
-socialists and communists want to the government to take control and share out money equally
-over 2,000 strikes, involving 788,000 workers and in 1937 it rose to 4,470 strikes
The Roosevelt Recession 1937-38
-FDR ordered cuts in federal government spending
-The Federal Reserve Board feared a rise in inflation and limited the supply of money in the US economy
-19 October 1937, there was another stock market crash when 17 million shares were offloaded by investors
-employment in manufacturing decreased by 23% and the GNP dropped by 13%
The Court Packing Plan 1937
-biggest setback was the attempt to change the composition of the US Supreme Court
-Feb 1937, he submitted a bill known as the Judicial Procedures Reform bill to Congress
-aim was to force all Supreme Court justices to retire at 70 years old.
-In 1937, six of the nine justices were over 7
-this bill was allow FDR to appoint six new justices, transforming the political balance of the Supreme Court
-wanted the number to change from 9 to 15
-this would give FDR immense power
-the plan got massive criticism and his popularity suffered
-Supreme Court was not a main opposition anymore but he still lost a lot of support in Congress
