UNIT 4 (USA 1918-41) 7-8 Flashcards
Wagner Act - Social Security Act
What did the Wagner Act ban
Banned unions which were funded by companies (company unions) and firing members that were part of a union
How much did union membership rise to
Rose to 9 million by 1940
What did union membership allow people to do
It allowed factory workers and craftspeople to campaign for better pay/working hours
What was given to unions and workers
Protection
What was the NLRB
National Labor Relations Board, supervised union negotiations and defended workers who were fired
How did the NLRB defend workers who were fired
These workers were fired because they were part of unions, they were helped by the NLRB who hired 226 lawyers in order to decrease unemployment and help families
What did the Social Security Act do
Created a federal pension system
How was the Act put into effect
Employees paid 1% of their total income into a pension scheme (later rising to 3%) alongside money paid into it from a tax on employers
When was the pension money paid to them
It was paid back in retirement
What benefit did the Social Security Act have
It increased workers‘ incentive to work for a pension
What else did the Social Security Act do
Created unemployment insurance and grants to help the unemployed
What did employers have to do
Employers of over 8 people paid a tax which provided unemployment pay to feed families
What else was given by the federal government
Matching grants given by the federal government to the money provided by the state government for dependent children
How many dependent children were helped
Over 7000 by 1939
What were some limitations to the Social Security Act
It was self-funded, meaning it could not pay out pensions immediately, and the US government took longer to recover (relied on taxes than government)
