Economic Challenges and Popular Support
Despite the initial recovery measures implemented during the Hundred Days, the United States economy remained in a state of crisis during the mid-1930s. Unemployment was still rampant, and millions of Americans were struggling to make ends meet. In response to this ongoing crisis, President Franklin D. Roosevelt sought to expand his New Deal programs with the introduction of the Second New Deal.
Key Facts
- Economic Challenges: The first New Deal measures implemented during the Hundred Days had produced some degree of recovery, but the economy was still far from its pre-Depression levels. Unemployment remained high, and there was a need for additional action to address the ongoing crisis.
- Popular Support: Despite facing opposition from conservatives, including some businessmen, the majority of Americans supported Roosevelt’s programs. This support was evident in the congressional elections of 1934, where Democrats gained more seats in both houses.
- Third-Party Challenge: Roosevelt anticipated a potential third-party challenge from the left in the 1936 presidential election. To counter this threat, he proposed additional legislation, often referred to as the “Second New Deal,” to further address the economic crisis and meet the demands of the destitute.
- Key Measures: The Second New Deal included several significant programs and acts aimed at redistributing wealth, income, and power in favor of the poor, farmers, and labor unions. Some of the key measures were:
- Social Security Act: Established an economic safety net for all Americans, providing unemployment and disability insurance, as well as old-age pensions.
- Works Progress Administration (WPA): Aimed to provide useful work for the unemployed, helping them maintain skills and self-respect. It involved various projects, including infrastructure development and cultural programs.
- Wagner Act (National Labor Relations Act): Reestablished labor’s right to bargain collectively and created the National Labor Relations Board (NLRB) to resolve labor disputes.
- Banking Act of 1935: Implemented banking reforms to stabilize the financial system.
- Rural Electrification: Expanded access to electricity in rural areas.
- Breaking up Utility Holding Companies: Addressed monopolistic practices in the utility sector.
Roosevelt enjoyed widespread support from the American public, who recognized the need for further action to address the economic crisis. This support was evident in the 1934 congressional elections, where Democrats significantly increased their majorities in both the House and Senate.
Addressing the Threat of a Third-Party Challenge
Roosevelt anticipated a potential challenge from the left in the upcoming 1936 presidential election. To counter this threat, he proposed additional legislation that would further address the economic crisis and meet the demands of the destitute. This legislation became known as the Second New Deal.
Key Measures of the Second New Deal
The Second New Deal consisted of several significant programs and acts aimed at redistributing wealth, income, and power in favor of the poor, farmers, and labor unions. Some of the key measures included:
Social Security Act:
- Established an economic safety net for all Americans, providing unemployment and disability insurance, as well as old-age pensions.
Works Progress Administration (WPA):
- Aimed to provide useful work for the unemployed, helping them maintain skills and self-respect.
- Involved various projects, including infrastructure development and cultural programs.
Wagner Act (National Labor Relations Act):
- Reestablished labor’s right to bargain collectively.
- Created the National Labor Relations Board (NLRB) to resolve labor disputes.
Banking Act of 1935:
- Implemented banking reforms to stabilize the financial system.
Rural Electrification:
- Expanded access to electricity in rural areas.
Breaking up Utility Holding Companies:
- Addressed monopolistic practices in the utility sector.
The Second New Deal significantly expanded the scope of the New Deal programs and played a crucial role in alleviating the economic crisis of the Great Depression. It established important social safety nets, supported labor rights, and promoted economic recovery.
Sources
- https://en.wikipedia.org/wiki/Second_New_Deal
- https://www.britannica.com/biography/Franklin-D-Roosevelt/The-Second-New-Deal
- https://www.loc.gov/classroom-materials/united-states-history-primary-source-timeline/great-depression-and-world-war-ii-1929-1945/franklin-delano-roosevelt-and-the-new-deal/
FAQs
What was the Second New Deal?
The Second New Deal was a series of programs and policies implemented by President Franklin D. Roosevelt in the mid-1930s to further address the economic crisis of the Great Depression.
Why did Roosevelt create the Second New Deal?
Roosevelt created the Second New Deal to expand upon the initial New Deal programs and address the ongoing economic crisis. He aimed to provide more relief to the unemployed, establish social safety nets, and promote economic recovery.
What were the key measures of the Second New Deal?
The key measures of the Second New Deal included the Social Security Act, the Works Progress Administration (WPA), the Wagner Act (National Labor Relations Act), the Banking Act of 1935, rural electrification efforts, and the breakup of utility holding companies.
How did the Second New Deal help alleviate the economic crisis?
The Second New Deal helped alleviate the economic crisis by providing jobs for the unemployed, establishing social safety nets, and stimulating economic activity through various programs and projects.
What was the impact of the Second New Deal on American society?
The Second New Deal had a profound impact on American society. It established important social safety nets, such as Social Security, which provided financial assistance to the elderly, unemployed, and disabled. It also supported labor rights and promoted economic recovery, leading to a gradual improvement in the overall economic conditions.
How did the Second New Deal contribute to the New Deal Coalition?
The Second New Deal helped solidify the New Deal Coalition, a political alliance that supported Roosevelt and his policies. It brought together various groups, including farmers, laborers, the poor, and ethnic minorities, who benefited from the programs and policies implemented during the Second New Deal.
What were some of the criticisms of the Second New Deal?
The Second New Deal faced criticism from conservatives, who argued that it was too expensive and that it expanded the role of the federal government in the economy. Some also criticized the WPA for creating jobs that were seen as unnecessary or wasteful.
How did the Second New Deal compare to the First New Deal?
The Second New Deal expanded upon the programs and policies of the First New Deal. It focused more on providing direct relief to the unemployed, establishing social safety nets, and promoting economic recovery through job creation and infrastructure projects.