The Second (1934 – 1936) and Third New Deal
(1937 – 1938)
I Review:
A First New Deal (1933 – 1934): The Three “R’s”
1 Recovery of the Economy
2 Relief for the Unemployed and Homeless
3
Reform of Financial Institutions
B
Emphasis: Partnership with Business and Agriculture
II
Shift of Emphasis in Second / Third New Deals
A
Social Justice: Based on the assumption that in a
democratic society the basic needs of food, shelter, jobs, and education should
be available to all citizens. If these
conditions are not met in a free market economy, then it is the responsibility
of the political process (government) to make these needs accessible to
citizens. Underlying this concept is a belief that the assumption that the
needs of the many outweigh the needs of the few
B
Emergence of the Social Welfare State: A nation or
state in which the government assumes responsibility for some or all of the
individual and social welfare of its citizens.
Welfare states commonly provide education, health care, food programs
for the poor, unemployment competition, and other social benefits. The
III
Second New Deal (1935 – 1936)
A
Emphasis on Social Reform based on Social Justice
B
Emergence of Social Welfare State
C
Stressed Relief & Recovery
IV Specific Actions and Programs
A Work Progress Administration – Replaces Civil Works Administration
1 Job Creation – 3 million people per year; 13% were women
2
Example –
B Resettlement Administration / Farm Security Administration
1 Recovery: Relocate tenant farmers (Joads) to Land Purchased by the Government
a Failed: Opposition in Congress: To “Soviet – Like”
2
Relief: Housing for Migrant Workers in
a
Case Study –
b Grapes of Wrath and Steinbeck’ Research
V Social Welfare State: Entitlement Legislation
A Social Security Act of 1935
1 Concept: National Health and Unemployment Insurance and Old-Age Pensions
2 Consequence: Compromise Legislation
a Excluded farm laborers, domestic servants, and part-time workers
b Discriminated against married women wage earners
c Failed to protect against sickness (no health plan)
B Wagner Act of 1935 (National Labor Relations Act)
1 “New Deal of Labor”
2 Provisions:
a Outlawed Blacklisting
b Right for workers to organize in unions and bargain collectively
c Established the Labor Relations Board – Mediation of Contracts between Labor and Management
VI Third New Deal (1937 – 1938)
A Limited Legislation
1 Growing Threat of War and Increased opposition from Congress
B Farm Security Administration (FSA): Aid tenant farmers, sharecroppers, and owners who had lost their farms.
C National Housing Act of 1937:
1 Federal Funding for Low-Cost Housing in urban areas
2 “Low Cost” = Poorly Constructed = Slums
3 Note: New Deal legislation had greater impact on middle-class housing policies.
a Legislation had been passed in First New Deal. (HOLC and FHA)
b Combined/coordinated with National Housing Act
D Fair Labor Standards Act – 1938
1 Minimum Wage ( 25 cents per hour) and Maximum Hours (44 hours)
2 Barred Child Labor in Interstate Commerce – Lewis Hine’s Crusade
a Workers under 16 years of age
b Did not include children of migrant workers
3 No distinction between men and women
a Did not mean equal pay for equal work
b No need for protective legislation for women
VII Legacies of the New Deal
A Did not
1 end the Great Depression
2 extend social welfare measures, e.g. Social Security Act, to migrant workers
3
deal with the issues of discrimination by race and
gender
B Did
1
Give individuals hope in
2 Sustained Democracy
3 Ended Laissez Faire Government
4 Established foundation for Social Welfare State