Second New Deal

Definition

The Second New Deal refers to a series of programs and reforms initiated by President Franklin D. Roosevelt in 1935 aimed at providing relief, recovery, and reform during the Great Depression. This phase built upon the first New Deal by expanding federal government intervention in the economy and introducing more ambitious social welfare initiatives, such as social security and labor rights. It significantly reshaped the relationship between the government and American businesses, leading to lasting changes in economic policy and regulation.

5 Must Know Facts For Your Next Test

1. The Second New Deal introduced key programs such as the Works Progress Administration (WPA), which provided jobs for millions of unemployed Americans.
2. It marked a significant shift towards more progressive labor policies, with the passage of the Wagner Act protecting workers' rights to unionize.
3. The Social Security Act was one of the most enduring achievements of the Second New Deal, laying the foundation for the modern social safety net in the United States.
4. Roosevelt's Second New Deal faced opposition from both conservatives who believed it expanded government too much and from progressives who wanted even more radical reforms.
5. The Second New Deal solidified a new political coalition that included labor unions, farmers, and urban political machines, which supported the Democratic Party for decades.

Review Questions

• How did the Second New Deal differ from the First New Deal in terms of government intervention in the economy?
  • The Second New Deal differed from the First New Deal primarily in its focus on more direct and aggressive government intervention in the economy. While the First New Deal included measures aimed at economic recovery through stabilization and reform of banks and industries, the Second New Deal emphasized social welfare programs and labor rights. It sought to create jobs through initiatives like the WPA and introduced protections for workers with laws like the Wagner Act, reflecting a broader commitment to social justice.
• Evaluate the impact of the Social Security Act as part of the Second New Deal on American society and business.
  • The Social Security Act had a profound impact on American society by establishing a system of old-age benefits that provided financial support to retirees, thereby reducing poverty among the elderly. For businesses, this act introduced new payroll taxes that created a financial obligation but also contributed to a more stable consumer base as seniors received income. Overall, it marked a significant shift towards a welfare state model that integrated social responsibility into economic policy.
• Analyze how the Second New Deal laid the groundwork for modern American liberalism and its effects on future government policy.
  • The Second New Deal laid critical groundwork for modern American liberalism by expanding the role of government in economic affairs and establishing a precedent for social welfare initiatives. Programs initiated during this period, like Social Security and labor protections, set standards for future government policies aimed at ensuring economic security and social equity. This shift in ideology influenced later administrations to adopt similar approaches in response to economic crises, reinforcing a commitment to using federal power for social good that continues to resonate in contemporary policy debates.

Related terms

Social Security Act: A landmark piece of legislation passed in 1935 that established a system of old-age benefits, unemployment insurance, and welfare programs for the elderly and disadvantaged.

Wagner Act: Also known as the National Labor Relations Act, this 1935 law guaranteed workers' rights to unionize and engage in collective bargaining.

Public Works Administration: A New Deal agency created in 1933 that aimed to create jobs through large-scale public works projects, such as the construction of roads, schools, and bridges.