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The Second New Deal Chapter 10.2. The Impact of the First New Deal? 2 million jobs - 10 million still unemployed Huge deficit spending Government abandoned a balanced budget Some believed Roosevelt had gone too far – rising debt. Others thought he had not done enough
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The Second New Deal Chapter 10.2 • The Impact of the First New Deal? • 2 million jobs - 10 million still unemployed • Huge deficit spending • Government abandoned a balanced budget • Some believed Roosevelt had gone too far – rising debt. • Others thought he had not done enough • Roosevelt is still popular with the people. • Challenges from others – Long, Townsend
Overall the First New Deal was a failure to many people. Roosevelt sees a need for a Second New Deal
New Funding for the WPA – Works Progress Administration. • $5,000,000,000 in new funding • built 650,000 • miles in new • highways • 125,000 new • buildings • 8,000 more parks • 124,000 new bridges • 853 new airports.
While all of this sounds good, it has an impact on the American economy, the impact on the economy was, • Increased Debt • Increased Reliance on the government
The Federal Number One program: • A section of the Professional Projects Division. • Employed writers, artists, musicians, and theater people. • They were employed to beautify walls, write plays, and make performances. • The idea was to employ more people.
The Sick Chicken Case: • Supreme Court challenges to the practices of the government to control trade in the economy. • United States v. Schechter • Government tried to control the wages and hours of employees not involved in Interstate trade. (not in the power of the Executive Branch) • It forced Roosevelt to demand Congress to approve of the 2nd New Deal
The Rise of Industrial Unions: Democrats realize that to win favor with American workers they needed to show some support and help for them. • NLRB – National Labor Relations Board • A.K.A. – the Wagner Act • Gave employees the right to organize unions without interference from employers.
It also gave them the right to bargain collectively. • If there was trouble, they could take the whole process of “binding arbitration” to settle disputes. The Wagner Act spurred on the growth and power of Union Organization
The CIO (Committee for Industrial Organization) was created in 1935 b y John P. Lewis of the United Mine Workers. They began to help other industries like the automobile and steel workers to organize their unions.
1936 – General Motors Sitdown Strike: Workers at the car plant in Cleveland strike when two union men are demoted. It leads to other strikes around The nation as the Unions show as a show of support. Union Membership around the nation increased from 3 million members (1933) to 9 million members (1939).
The Social Security Act: Passed in 1935. Purpose: To provide security for the elderly and unemployed workers. (Remember – before the Great Depression there was no safety net for people who lost their jobs or retired)
What Social Security Provided: • A National retirement insurance program. • A State unemployment compensation • insurance program. • People could begin to collect Social Security • when they retire at age 65. (some exceptions) • If a person died before they retired, then • their survivors could collect benefits. It established the principle that the federal government should be responsible for those who no fault of their own, were unable to work.
The problem with social security over the years has been that it has become a sort of “slush” fund for many government agencies. They take the money out of the fund for other projects and many times have failed to pay it back. Projections are the Social Security fund will pay out more in benefits than it takes in by 2017. Social Security will be out of money by 2037. President Franklin D. Roosevelt, signing the original Social Security Act on August 14, 1935.
