(2e) Roosevelt and the Second New Deal 1935-1938

Question 1

Reasons for a more radical programme

Answer 1

• Responding to the opposition.
• Congress demanded more, and Roosevelt didn’t want them to set the agenda.
• Increasingly frustrated by the wealthy classes and big business who opposed him; he wanted to appeal to the less advantaged ranks of society who he felt were often ignored.

Question 2

Emergency Relief Appropriation Act 1935

Answer 2

• Biggest appropriation of government relief ever
  
  • $45.5 billion for public works schemes.
• Set up the Works Progress Administration which had employed 20% of workforce by 1940 on various schemes.

Question 3

The Revenue Act 1935

Answer 3

• The ‘Soak the rich’ act - it increased taxes.
• Tax on incomes over $50,000 went up from 50% to 75%.
• Ineffective - only 1% earned over $10,000.

Question 4

Social Security Act 1935

Answer 4

• First ever direct measure of govt welfare - major break from traditional role of federal govt.
• Set up Old Age pension.
• Unemployment benefit for up to 16 weeks.
• Self financing - people paid into a pension scheme.
• Domestic workers and agricultural workers were not included - affected women and black americans mainly.

Question 5

Wagner Act (National Labour Relations Act) 1935

Answer 5

• First time Labour Unions had been given legal rights.
• Set up National Labour Relations Board - ensure fair play between employer and workforce in disputes.
• Initiated in Congress - backed by Roosevelt.
• Labour Unions had always been treated with hostility by employers - they intimidated workers not to join unions.
• NRA banned this intimidation - Henry Ford still continued it however.

Question 6

Opposition to the ______ New Deal was __________.

Answer 6

Opposition to the second New Deal was significant.

Question 7

Opposition from the Supreme Court

Answer 7

• Declared New Deal legislation unconstitutional.
• ‘Black Monday’ 27th May 1935 - found several pieces of legislation unconstitutional (including NIRA and AAA).
• Sick Chicken Case - NIRA prosecuted New York Butchers - Supreme Court declared these codes unconstitutional.
• Judiciary Reform Bill: FDR wanted to raise judges from 9 to 15 and be allowed to appoint 6. Tried to force them at 70 but this piece of legislation didn’t go through and increased opposition.

Question 8

Opposition of Wealthy Conservatives

Answer 8

• Republicans and conservative Democrats thought FDR had too much power.
• December 1937 Conservative Manifesto called for lower taxes.
• 1938 Mid-term elections: FDR supported liberal rather than conservative Dems - achieved little.

Question 9

Roosevelt Recession, 1937-1938

Answer 9

• FDR cut govt spending to balance the budget.
• The economy hadn’t recovered enough for this to happen and led to a recession.
• Unemployment rose: 7 million to 10.39 million in 12 months.
• National Income fell by 13%.
• Social Security payments swallowed $2 billion of the nation’s wealth.

Question 10

The ________ of the New Deal were negated by the impact of __________ and the ___ ____ economy as WW2 broke out in Europe

Answer 10

The failures of the New Deal were negated by the impact of rearmament and the war time economy as WW2 broke out in Europe

Question 11

New ____ measures began to peter out as _______ affairs began to ________.

Answer 11

New Deal measures began to peter out as foreign affairs began to dominate.