Unit 3 Lesson 3: The Second New Deal

Question 1

Impact of the “First New Deal”

Answer 1

The “First New Deal” had focused largely on lessening the immediate suffering of the American people, and the policies passed in the first hundred days of Roosevelt’s presidency had increased public confidence and helped reduce the most drastic effects of the Depression.

Question 2

Impact of the “Second New Deal”

Answer 2

“Second New Deal” focused on increasing worker protections and building long-lasting financial security for Americans.

Question 3

Through the Second New Deal, Roosevelt created the country’s present-day social safety net. The Social Security Act. Waht is the Social Secuirty Act

Answer 3

The Social Security Act established programs intended to help the most vulnerable Americans: the elderly, the unemployed, the disabled, and the young. It included a pension fund for all retired people ages 65 and older, to be funded through a payroll tax on both employees and employers.

Question 4

What groups of people were not eligible for the benefits of the social security Act

Answer 4

Domestic workers and farmers were not eligible for benefits, however, leaving out many women and African Americans.

Question 5

Criticism of the New Deal targeted women and african americans

Answer 5

Women and African Americans did not receive direct help from the first wave of New Deal job programs. In addition, thousands of people were displaced when the government seized land for construction projects.

Question 6

Criticism of the New Deal
based on political ideology

Answer 6

The New Deal was considered government overreach that would erode American values like free enterprise and democracy. The National Recovery Administration (NRA) which offered new protections for workers, was also criticized by conservatives. Meanwhile, many liberals felt the New Deal did not do enough. Senator Huey Long wanted to seize and liquidate large personal fortunes and distribute that money to poor Americans.

Question 7

To help industrial workers, Roosevelt signed into law the Wagner Act, also known as the National Labor Relations Act. Why were these acts important

Answer 7

his legislation was necessary because protections for workers under the National Industrial Recovery Act (NIRA), passed in the First New Deal, were lost when the Supreme Court struck down the original law in 1935. The Court unanimously found the act unconstitutional because it delegated powers to the NRA that according to the U.S. Constitution were to be delegated only to Congres

Question 8

The Wagner Act created the National Labor Relations Board (NLRB) What did the NLRB do

Answer 8

The Wagner Act created the National Labor Relations Board (NLRB) to once again protect American workers’ rights to unionize and bargain collectively.

Question 9

What did the Fair Labor Standards Act of 1938 do

Answer 9

The Fair Labor Standards Act established a federal minimum wage, set a maximum work week of 40 hours, and prohibited child labor for those younger than age 16.

Question 10

Roosevelt expected the economy to have recovered enough by late 1936 that he could cut spending and reduce the deficit, and by early 1937, production, wages, and profits had all returned to pre-Depression levels. Unemployment was at its lowest rate in the decade, down from 25 percent to 14 percent. But as soon as Roosevelt cut spending, what happned?

Answer 10

a recession hit. Suddenly, two million Americans were newly out of work as unemployment rose by 5 percent and industrial production declined by a third. Breadlines appeared again, and banks prepared to close.

Question 11

What caused this recession?

Answer 11

Many people believed that the fear of increased taxes forced factory owners to cut growth. Others blamed the Federal Reserve for tightening the nation’s money supply. Roosevelt blamed the downturn on his decision to cut government spending.

Question 12

Advisers urged Roosevelt to adopt the new economic theory promoted by John Maynard Keynes. Who is Keynes and what was this theory?

Answer 12

Keynes, a British economist, argued that deficit spending was necessary in advanced capitalist economies in recession. Such expenditures maintained employment and stimulated consumer spending.

Question 13

What prevented another econmoic disater

Answer 13

Roosevelt soon asked Congress for additional emergency relief spending. His willingness to adapt in 1938 prevented another economic disaster.

Question 14

Groups of industrialists and wealthy Americans who opposed Roosevelt’s policies attacked his character. Elaborate

Answer 14

Some argued that he was moving away from American values toward fascism and socialism.

Question 15

Critics from the conservative democrat party

Answer 15

Some conservative Democrats shared these fears. They worried that more New Deal programs threatened the very nature of democracy.

Question 16

who was Dr. Francis E. Townsend

Answer 16

Townsend had proposed a plan of paying every retired citizen older than 60 the sum of $200 per month. Although his ideas influenced those developing the Social Security plan, Townsend did not believe the legislation went far enough.

Question 17

How did Townsend feel about the new deals

Answer 17

. Dr. Francis E. Townsend believed that Roosevelt had failed to adequately address the country’s tremendous problems.

Question 18

Who was Father Charles Coughlin

Answer 18

a popular “radio priest” from Michigan, was also a vocal critic.

Question 19

How did Coughlin feel about the new deals

Answer 19

Coughlin wanted more support for labor, monetary reform, and the nationalization of key industries. He created the National Union for Social Justice and used his weekly radio show to gain followers.

Question 20

In 1935, the U.S. Supreme Court dealt the most crushing blow to Roosevelt’s vision. Elaborate

Answer 20

The Court struck down several key pieces of the New Deal as unconstitutional. As you have read, the justices ruled that the NIRA overreached federal authority. They came to the same decision about the AAA and six other policies.

Question 21

fter Roosevelt won the 1936 election in a landslide, he decided to get revenge on the Supreme Court for challenging his positions. He also wanted to pressure the justices against challenging his Second New Deal policies. To do this, Roosevelt developed a court packing plan. What is that

Answer 21

The plan proposed expanding the number of justices by adding new ones who supported Roosevelt’s views.

Question 22

What was the resposne and impact of the court packing plan

Answer 22

both the Supreme Court and Congress strongly opposed this plan. So did many members of the Democratic Party. Roosevelt did not get the support necessary to make these changes. He did, however, succeed in politically intimidating the current justices into supporting his newer programs. Never again during Roosevelt’s presidency did the Supreme Court strike down any significant elements of his New Deal.

Question 23

The greatest threat to Roosevelt’s leadership came from a corrupt but popular Louisiana senator named Huey P. “Kingfish” Long. Who was Long

Answer 23

Long was among Roosevelt’s critics who argued that the president was not doing enough to help people.

Question 24

Long proposed his own program, called Share Our Wealth. What was propsoed in this program

Answer 24

Long recommended giving direct payments to less fortunate Americans by raiding the fortunes of very wealthy Americans.

Question 25

What happend to Long

Answer 25

He had a large following of more than four million people. But in September 1935 Long was shot in a hallway of the Louisiana State Capitol and died two days later. If he had not been assassinated, Long may well have been a serious contender against Roosevelt for the 1936 presidential nomination.

Question 26

Explain why Roosevelt’s court packing scheme failed.

Answer 26

Roosevelt’s court packing plan failed because Congress, the Supreme Court, Republicans, and even some Democrats opposed it, making it politically impossible for him to carry it out.

Question 27

What was it like before the new deal money wise

Answer 27

Before the New Deal, state governments largely ran financially independent of the federal government. It was up to them to raise their own money to fund most of their programs. The federal government occasionally provided grants or other aid to state governments, but most expenses that belonged to the states were the responsibility of the states.

Question 28

What was it like after the new deal money wise

Answer 28

t. One new aspect of the New Deal was to change where much of the money came from. States still fund their own spending, but the New Deal made grants and other provisions from the federal government available to them in large amounts. This drastically changed the source of much of the funding in the United States from the states to the federal government. Because it is now managing so much money, the size of the government itself has expanded.

Question 29

Impact of the new deal on laissez-faire economics

Answer 29

ccording to economists such as Adam Smith, leaving the economy alone to respond naturally to market forces will eventually lead to a maximally effective economy. However, the New Deal did just the opposite, and the federal government became heavily involved in the economy. Regardless of anyone’s opinion regarding whether this is a good or bad outcome, the principles of laissez-faire economics are no longer preeminent in the American economy.