26.3 The Second New Deal

The Second New Deal aimed to address criticisms of the first, focusing on long-term reform and tackling unemployment. It expanded existing programs and introduced new ones like the WPA, NYA, and REA, providing jobs and improving infrastructure across America.

Key legislation like the Social Security Act, Wagner Act, and Fair Labor Standards Act created lasting impacts. These laws established retirement benefits, protected workers' rights, and set labor standards that continue to shape American society today.

The Second New Deal: Addressing Criticisms and Expanding Programs

Expansion of New Deal programs

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• The Second New Deal (1935-1938) responded to criticisms that the First New Deal did not sufficiently address unemployment and economic inequality and focused too heavily on relief rather than long-term reform
• Expanded and introduced new programs to tackle these concerns, such as the Works Progress Administration (WPA) which provided millions with employment through public works projects (construction of roads, bridges, and public buildings)
• National Youth Administration (NYA) offered part-time jobs and education for young people to gain work experience and skills
• Rural Electrification Administration (REA) brought electricity to rural areas, improving quality of life and creating economic opportunities by enabling the use of modern appliances and equipment
• Introduced more comprehensive and long-lasting reforms, including the Social Security Act, Wagner Act, and Fair Labor Standards Act, which aimed to provide a safety net for Americans and protect workers' rights

New Deal's impact on minorities

• Women gained some opportunities in the workforce through programs like the WPA and NYA but often faced discrimination and lower pay compared to men for the same work
• Social Security Act initially excluded many female-dominated professions (domestic work, agricultural labor), limiting its benefits for women
• African Americans received some relief and employment opportunities but frequently encountered discrimination and segregation within New Deal programs
• Agricultural Adjustment Act (AAA) led to the displacement of many African American sharecroppers and tenant farmers due to reduced crop production and consolidation of land ownership
• Despite challenges, the New Deal era saw increased political activism and organization among African Americans (National Negro Congress) advocating for civil rights and equality
• Indian Reorganization Act (IRA) of 1934 sought to reverse assimilationist policies of the Dawes Act and restore tribal sovereignty, encouraging tribal self-government, cultural preservation, and economic development
• IRA was not universally embraced by all Native American tribes, and its implementation varied based on tribal preferences and government oversight
• Civilian Conservation Corps (CCC) provided employment for Native Americans but sometimes involved work on projects that conflicted with traditional cultural practices (construction on sacred lands)

Key legislation and lasting effects

• Social Security Act (1935):
  1. Established a national system of retirement benefits for workers, funded by payroll taxes
  2. Provided unemployment insurance for temporary financial assistance to workers who lost their jobs
  3. Included aid programs for dependent children, the elderly, and the disabled
  • Remains a cornerstone of the American welfare system today, providing a safety net for millions of Americans
• Wagner Act (National Labor Relations Act) (1935):
  • Guaranteed workers the right to organize unions and engage in collective bargaining, protecting them from employer interference or discrimination for union activities
  • Established the National Labor Relations Board (NLRB) to enforce the act and mediate labor disputes
  • Led to significant increase in union membership and helped improve working conditions and wages for many Americans
• Fair Labor Standards Act (1938):
  • Established a national minimum wage and maximum work hours for many industries, helping to improve working conditions and living standards
  • Prohibited child labor in most industries, protecting children from exploitation and ensuring their access to education
  • Subsequent amendments have expanded its coverage and raised the minimum wage over time to keep pace with inflation and changing economic conditions

Labor and Economic Reform

• The Second New Deal significantly strengthened labor unions, leading to increased membership and bargaining power
• Collective bargaining became a protected right, allowing workers to negotiate for better wages, benefits, and working conditions
• Public works projects provided employment opportunities and stimulated economic growth
• These reforms laid the foundation for a more comprehensive welfare state, expanding government's role in social and economic support
• Worker's rights were enhanced through legislation, improving job security and workplace conditions