2.4 The Second New Deal

Question 1

THE SECOND NEW DEAL
the Wagner act /National Labor Relations Act

Answer 1

proposed by senator Wagner because Roosevelt was “reluctant to become involved in labor relations + uninterested with little understanding”- according to critics BUT FDR approved the act.
- gave trade unions basic rights = greatest increase in trade union memberships
- guaranteed workers the right to collecting bargaining back to the unions (after the national industrial recovery act was “unconstitutional”)
- work places were given the right to join trade unions after a secret ballot of their members
- NATIONAL LABOUR BOARD = ensure members + trade unions acted correctly
- provided basis for modern US labor relations

BUT
excluded agricultural +service workers + public employees (due to congress)= black ,Hispanics + women received very little help

Question 2

THE SECOND NEW DEAL
The social security act 1935

Answer 2

• previous provisions made by the states for social security was wholly inadequate (capitalism = poor was deserved + did not posses a national gov for the elderly / welfare state)

= introduced due to criticism of the first deal
- funded by equal contributions from employers + workers = $ to unemployed
- pensions at $18 a week = first federal measures of direct help to workers right+ be continued to be built upon
- 1940: first person to receive pension

BUT
- not enough aid to the poor
- assistance varied in each state
- health insurance not included
- excluded agricultural + service & public workers = black ,Hispanic s + women received very little benefit

Question 3

THE SECOND NEW DEAL
the revenue wealth act 1935

Answer 3

help pay for the reforms BUT seen as an attack on the fundamental right that Americans can get rich (FDR had no intention of redistributing wealth = reduced need for gov deficit spending

• income tax: 63%- 79% on incomes over $5 million
  -raised over $250 million (tiny sum compared to amount needed - but because of laws regulating tax
  -could not tax middle class because would cut spending power + delay economic recovery
• increased taxes on property + introduced undistributed profit tax = forced company back into stock market= raise money for more investment in the economy

: more a political show piece than a change (against share our wealth campaign
BUT was criticized for being a class traitor

Question 4

THE SECOND NEW DEAL
opposition

Answer 4

SOCIALIST , COMMUNIST STRIKES + SIT INS

-wanted to destroy the economy and replace it with an economic system that they regarded as more fair

(USA economy: private ownership of property, business , agriculture +industry= enabled it to become the worlds biggest economic power
BUT
-concentrated on a small number of people
- big gap between poor +rich (eg Rockefellers)
-1/3 still poor

looked to USSR as a model economy
evidence of discontent:
1936: 2000strikes - 788,000 workers
1937: 4490 strikes 1.9million workers
= received a lot of publicity but impact on elections was marginals