The Second New Deal Flashcards
The Emergency relief appropriation act, 1935
saw the authorisation of the largest appropriation for relief
set up new agencies to provide unemployment through federal works
$45.5 billion was allocated to the ERAA
It set up the Works Progress Administration
The works progress administration
recruited people for public works projects
by 1941, 20% of the nation’s workforce had found employment with it
Wages were approximately $52 per month - greater than any relief but less than rate in the industry
WPA was not allowed to compete for contracts with private firms or to build private houses
WPA built 1,000 airport landing fields, 8,000 schools and hospitals and 12,000 playgrounds
WPA engaged with large scale projects
it was responsible for cutting the Lincoln Tunnel and building Fort Knox
The resettlement administration, May 1935
It was decided to merge all rural rehabilitation projects into one agency RA
Run by Tugwell - plans to move 500,000 families from overworked land and resettle them in more promising surroundings elsewhere
This necessitated the agency buying good land, encouraging farmers to move and teaching them how to farm effectively with new machinery and techniques
Tugwell also envisaged building of greenbelt communities - only 3 built - rural problems such as poverty and the Dustbowl were too great to be solved by 3 new towns
Agency only settled 4,441 families - not a success - reluctance and costs
With work in short supply everywhere people tended to stay despite efforts of the RA - less successful than first new deal
The revenue act, June 1935
This act was implemented to pay for New Deal reforms
It was perceived, by those affected, to be an attack on the right of Americans to become rich
The government sought to raise more revenue through taxation by targeting those who could most afford it
Many original proposals - federal inheritance tax - were defeated
Legislation finally created a graduated tax on corporate income and and excessive profits tax on corporations
maximum tax on incomes over $50,000 was increased from 59% to 75%
However, laws regulating taxes paid by corporations contained loopholes, which clever lawyers could easily exploit
new taxes only raised $250 million
only 1% of the population earned more than $10,000 - increased income taxes did not raise large amounts of revenue
However, if Roosevelt raised taxes on the middle class, he would have cut their spending power and delayed economic recovery
The act did little but was a precedent for higher taxes during the Second World War
The Wagner act, July 1935
There was a mistrust of labour unions in the USA, this was particularly the case among conservative politicians such as Southern Democrats, whose support Roosevelt needed
Roosevelt had no more wish to become the champion of unions than to upset big business further - big business generally loathed unions
This act was not therefore initiated by Roosevelt - he approved it only when it passed the Senate and looked likely to become law
It was born out of disappointment with the Labour Board set up under the NRA
The act guaranteed workers the rights to collective bargaining through unions of their own choice.
choose their union through secret ballot; NLRB was then set up to ensure fair play
employers were forbidden to resort to unfair practices like discrimination against unionists
Act effectively gave union rights in law and committed government to role in labour relations
Roosevelt continued to take a back seat in labour relations
The public utility holding company act, August 1935
Giant holding-company structures were often powerful enough to bribe legislators either to stop legislation that threatened them or promote beneficial laws
The act ordered the breaking up of all companies more than twice removed from the operating company
This destroyed the pyramid structure
All holding companies had to register with the Securities Exchange Commission which would decide their fate
Any company more than twice removed from the utility that could not justify its existence on the grounds of co-ordination of utilities or economic efficiency was to be eliminated by 1st January 1940
The Social Security Act
August 1935
Limitations of the SSA
generally inadequate
Importance of the SSA
major break with American government tradition
The Banking Act
August 1935
Assessing the second new deal
important expansion of the role of the federal government
Opposition to the second new deal
The Supreme court
inevitable conflict due to flexible ideas on workings of the constitution
Opposition to the second new deal
The Supreme court
The ‘sick chicken’ case
most serious decision by the court
motivated FDR into action
Opposition to the second new deal
The Supreme court
The judiciary Reform Bill
FDR believe the justices on the Supreme Court were not adequate enough
Opposition to Roosevelt
opposition from big business and wealthy people who felt the new deal had gone too far
