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2/22/2016
The Second New Deal (1935 - 1939)

Vocabulary:
court-packing plan: FDRs plan to add justices to the
Supreme Court to protect New Deal laws
dole a charitable gift of food, clothes, or money
Social Security government insurance program for
retired, unemployed, or disabled people

Announcements
5 SW Tracker

Did the New Deal work?

New Deal
Expanded federal programs to
provide relief, recovery, and
reform
Examples:
Agricultural Adjustment
Administration (AAA) paid farmers
NOT to plant in order to drive up
prices
National Recovery Administration
(NRA) executive branch
coordinated agreements between
industry & workers to set fair prices
& wages

Challenging the Court

Lochner v. New York (1905) had struck down a
ten-hour workday law because businesses &
workers have liberty of contract
Supreme Court struck down similar laws for
decades, including minimum wage laws, the
AAA & the NRA

Challenging the Court

FDR announced plan to add
6 more New Deal-friendly
justices to Supreme Court
(for a total of 15) = courtpacking
Unpopular plan; opponents
called FDR a dictator
Unnecessary because
Supreme Court changed its
mind the switch in time
that saved nine

Opposition to the New Deal

American Liberty League conservative probusiness group that felt New Deal was socialistic
(Communists & Socialists felt New Deal didnt do
enough)

Opposition to the New Deal

Other popular liberal opponents:
Dr. Francis Townsend said government
should pay all people over 60 not to work
Huey Long Senator who established the
Share Our Wealth Society, arguing for
complete redistribution of wealth

Second New Deal

Second New Deal responds to
challenges, 1935-36
Frances Perkins, first woman
appointed to cabinet, becomes
Secretary of Labor & proposes Social
Security
Social Security Act sets up a federal
tax on employees & employers to
fund a retirement system &
unemployment insurance

Legacies of the New Deal

Social Security
Banking reforms
FDIC: protects bank deposits
Glass-Steagall Act: divided commercial banks
& investment banks

Minimum wage

Legacies of the New Deal

But it didnt end the Great Depression

Or did it?