USA - 2nd deal

Question 1

Why was there a second deal?

Answer 1

2 years of ND since 1933 and income was still low
November 1934 Congressional elections brought reformist politicians + Supreme Court shut down some ND agencies –> 2nd Deal

Question 2

WPA? 2ND, May 1935

Answer 2

Harry hopkins in charge
Spent 11 billion$ on short-term work schemes that employed 8 million
Mostly employed unskilled workers in manual labor and built public works infrastructure projects; e.g. road building
also helped students stay in college, organised sewing classes for women, guidebook writing for artists
e.g. National Health Survey which revealed 2 million cases of serious illnesses go without treatment every year ++> WPA sends nurses to the homes of the poor, builds hospitals, provides medical and dental treatment to those who otherwise cant afford

Question 3

Achievements of the ND?

Answer 3

Farm income increased from 2 –> 4 billion
RFC(gov agency to aid corporations, etc) helps 6000 banks become operational again
Unemployment: 1933 = 13 million –> 1939 = 9.5 million
WPA employed 8 million
people that received financial aid –> 35 %
Social Security: federal help for the 1st time
Electrification of farms
Recognition of unions
Banking reforms: Banking Act 1935
Women’s division in the WPA gave specific help: sewing classes, etc
30% –> black families received relief aid
Indian Reorganisation Act –> re-entitled 7.4 million acres of land to Indians

Question 4

Shortcomings of the ND?

Answer 4

Tenant farmers evicted from land and depended on grants
1929 –> 3% unemployed; 1939 –> 17% unemployed
reliance on government; FDR tried cutting federal spending dedicated to re-stimulate the economy –> unemployment rose to 5%
Only 40% of applicants accepted into WPA; 750 thousand left unemployed compared to only 250 thousand accepted in NY since quota was already reached
Many ND relief programs paid by workers’ wage rather than just taxation of rich
CCC –> 2.5 million jobs for men - only 5 thousand for women
AAA racism: black tenants thrown off farmlands
Indians heavily-dependent on WPA; left without income when closed

Question 5

Impact of the social security act? ND

Answer 5

1935 - Roosevelt passed the Social security act to change the fact that the USA had previously no real national system for pensions or unemployment insurance for workers. It created:

• the Pension system - employees paid into a pension scheme for retirement + contributions to the pensions account through tax from the employer - intially 1% contribution increased to 3% later on -
• Federal support for old people through grants
• Federal unempoyment insurance

Question 6

help/welfare for the poor?

Answer 6

WPA + Work relief projects including the CCC and PWA received $4 billion to provide temporary employment for the poor
Housing - resettlement administration built new suburban towns for urban families - However only 3 were built
working conditions - Integral part of the ND was the NRA, which helped improve the working conditions of industrial workers; it introduced minimum wage and maximum working hours.

Question 7

Welfare for farmers?