Second new deal and social security Flashcards
Second New Deal and Social Security
Second New Deal (1935):
FDR’s response to challenges, marked by the “Second New Deal” in 1935.
Emphasis on long-term reforms and social welfare initiatives.
Social Security Act of 1935:
Provision for old age pensions, sickness assurance, accident and unemployment insurance, and child welfare.
Considered inadequate but symbolized the start of a welfare state.
Other innovations: 44-hour week, minimum of 25 hours, progressive taxation.
Wagner Act supported trade unions, showing the government’s commitment to workers.
Second New Deal Initiatives
Key Aspects of the Second New Deal:
Shift in focus to labor rights and collective bargaining.
National Labor Relations Act (Wagner Act) guaranteed workers’ rights to form unions.
Works Progress Administration (WPA) aimed at job creation through public works projects.
Other Initiatives:
Rural Electrification Administration (REA) brought electricity to rural areas.
Fair Labor Standards Act (FLSA) set minimum wage and maximum hour regulations.
Opposition to the New Deal
Critics of the New Deal:
Opposition from conservatives and business leaders.
Accusations of expanding federal government, hindering individual liberty, and discouraging free-market capitalism.
Supreme Court Challenges:
Initial Supreme Court challenges struck down New Deal measures.
FDR’s court-packing plan aimed to increase sympathetic justices.
Impact of Supreme Court actions on New Deal legislation.
Conclusion - Successes and Failures of the New Deal
Successes of the First New Deal:
Decision to take the U.S. off the gold standard stabilized financial markets.
Protection of homeowners and farmers through loan refinancing.
Public works schemes provided employment, conservation, and infrastructure development.
Failures of the First New Deal:
Agricultural Adjustment Administration (AAA) did not achieve desired results.
Overproduction issues persisted, worsening rural poverty.
Opposition and disillusionment by the end of 1934.
Impact and Legacy:
World War Two, not the New Deal, restored employment and prosperity.
Long-term impact on American society, increased government role.
Balanced relationship between agriculture and industry.