Topic 2 - The Second New Deal

Question 1

Reasons

Answer 1

Roosevelt had to respond to more radical left-wing supporters
Frustrated with big business / wealthy who still opposed him
Wanted to appeal to the less well-off and ‘forgotten’

Question 2

Emergency Relief Appropriation Act

Answer 2

1935 → Set up the WPA which employed 20% of workforce by 1940
WPA given $45b

Question 3

The Revenue Act

Answer 3

1935 → Increased taxes on incomes over $50,000 from 50% - 75%

Question 4

Social Security Act

Answer 4

1935 → Brought in old age pensions, disability pensions and unemployment benefit (limited to 16 weeks) → First direct welfare legislation

Question 5

Wagner Act

Answer 5

Gave trade unions legal rights through laws on collective bargaining, and a 3-man National Labour Relations Board to ensure fair discussions

Question 6

Influence of the Supreme Court

Answer 6

Ruled that legislation of the New Deal was unconstitutional
Black Monday, 27 May 1935 → ruled that several pieces of New Deal legislation, including NRA, was unconstitutional

Question 7

Judiciary Reform Bill

Answer 7

Roosevelt responded with this in February 1936
Proposal → Raise the number of judges from 9 to 15 and retire them at 70 → this was rejected by 70 votes to 20

Question 8

Opposition of wealthy and conservatives

Answer 8

Republicans and conservative Democrats felt Roosevelt had too much power → Congress called for lower taxes and more restrictions on trade unions / industrial action

Question 9

Roosevelt Recession
1937-38

Answer 9

Roosevelt cut govt. spending to achieve balanced budget
Impact → Unemployment increased from 7m to 10m and national income fell by 13%