2nd New Deal Flashcards
What were criticisms of the WPA?
The right insisted it was a communist org
TU’s and other left wing commentators argues that workers were exploited by the WPA as, although wages were higher than any benefit, they were less than the going rate in industry
How successful was the WPA?
Was the most sig. relief agency of the New Deal - in its 8 yr history 8.5mn were employed by it
What did the Wagner National Labour Relations Act of July 1935 do?
Replaced aspects of the NRA
Confirmed right of collective bargaining and allowed workers to joint unions
To make sure workers & employers acted correctly, a National Labour Relations Board was established
What were the criticisms of the WNLRA?
1943 - Smith-Connally War Labour Disputes Act weakened the position of trade unions - gave Pres. power to seize all factories where strikes were taking place and made it an offence to encourage strikes
How successful was the WPA?
First legislation that effectively gave TU’s rights in law and it committed fed. gov’t to a role in labour relations
BUT FDR remained reluctant to intervene in labour relations issues
TU’s still faced political attack, notably from House Committee on Un-American Activities, which criticised act as pro-Communist
What did the Social Security Act of August 1935 do?
Provided long term assistance to those who needed it
Intro’d old age pensions & unemployment benefits
Social security was to be funded by contributions from both employers & employees
Fed. gov’t was to provide pension scheme whilst states administered unemployment benefit - this SC unable to declare act unconstitutional on grounds that it didn’t provide role for states
What were the criticisms of the SSA?
Right argued that it made people dependent on the state & took away personal initiative
Left argued that no - payments could be made until 1942 as it was self-financing & recipients had to have paid into system before getting back from it / unemployment benefit low & limited in duration / many occupations excluded inc. those most in need of help / health insurance wasn’t included as American Medical Asso. wouldn’t agree to any measure that limited its rights to charge fees
How successful was the SSA?
FDR believed it sent out strong message that gov’t cared about people
Never before had there been direct system of national benefits
What did the Works Progress Administration do?
Help the unemployed, esp. white collar professionals, women, young Americans and African-Americans
Provided public works projects
What did the Revenue Act of August 1935 do?
Provided finance for the New Deal
Top levels of income tax from 63% to 79% and increased estate taxes
An undistributed profits tax was intro’d to try & force large corps back into the Stock Market and thus raise money for investment
Silence left-wing critics like Huey Long, who demanded a major redistribution of wealth
What were the criticisms of the RA?
Provisions hit the wealthy and big businesses and were very unpopular with these sections of the American Population
How successful was the RA?
New taxes raised little in the way of revenue as only about 1% of the population earned enough to pay the top levels of income tax and the estate tax provision was easily exploited & evaded
What successes did the New Deal bring to the USA?
Some argue FDR founded the modern American welfare state based on the idea that fed. gov’t had responsibility to guarantee a min standard of living
Sig. expanded role of Pres.
FDR administration made considerable advances in reforming industry, agriculture and banking & helped out Americans back to work
June 1937 American output surpassed 1929 - FDR had financed much of the New Deal by deficit budgeting but now decided to balance the budget by cutting gov’t spending - what did this cause?
Sent the U.S. economy into reverse
Unemployment rose again to 11.5mn
FDR increased gov’t spending again, advancing $3.75bn for relief & public works
Economy began to recover
There was no redistribution of…
… wealth
Roosevelt saved capitalism rather than replacing it and with a few exceptions…
… such as the TVA, the New Deal never challenged the basic principles of capitalism
What was the percentage of Americans out of unemployment in 1932, and 1938?
23.6% - 1932
19% - 1938
New Deal did not change the plight of who?
Women or African-Americans
What happened with the ‘sick chicken case’?
A New York firm was accused of selling diseased chicken, breaking a code of the NRA
SC found fed. gov’t had exceeded its powers by interfering in trade between states, which was a matter left to individual states
In effect the NRA had been found unconstitutional
1937 FDR submitted a bill to congress, what did it propose?
If passed all justices over the age of 70 would be forced to retire
Law would apply to fed. judges, but was clearly directed at SC
Bill would also give Pres. power to appoint 6 new judges & would allow FDR to pack court with 12 judges nominated by him
What was the result of the bill FDR submitted to congress in 1937?
Led to opposition on the basis that the Pres. Had already sig. increased his power
Rejected in the Senate by 70 votes to 20
Why was FDR undermined by a change of attitude by the SC?
They upheld a min wage act passed by the state of Washington on 29th March 1937
SC also upheld Wagner Act on 12th April
Most conservative of justices, Willis Van Devanter, announced retirement 1937, allowing FDR to nominate his own justice
Why was the Republican Party an ineffective opponent to FDR?
Failure at the polls
Schechter Corporation received financial support from the owners of…
… U.S. Steel to bring the ‘sick chicken case’ to court
Why were the Liberty League the most notable right wing opposition?
Many of the wealthy supported FDR when they believed capitalism was at threat but turned against him when it was saved
This was in part due to increase in taxes but the LL also based its opposition on the need to ‘defend and uphold the constitution’
What two big businesses supported FDR?
Warner Brothers & Standard Oil
Socialists and Communists were the most extreme left wing opponents of the New Deal, but why were they not significant?
Not significant in U.S. politics
What did Huey Longs ‘share our wealth’ campaign propose, & what happened to him?
Guaranteed min annual wage & confiscate personal fortunes over $3mn
Campaign had 4.6mn members
Nov 1936 - Long was shot dead by dissatisfied supporter
What did Charles Coughlin propose?
Founded National Union of Social Justice
Claimed FDR had been influenced by banking community and couldn’t be trusted
Had radio programme with 35mn listeners
Became more anti-Semitic so influence suffered
What did Francis Townsend propose?
Plan for old age pensions in 1933 that would amount to $200 per month for everyone under 69 who was out of paid employment
Plans were impractical
By 1935 he had gathered support from more than half a mn oap’s in his Townsend clubs
