Second New Deal

• New Deal agencies


  • CWA
  • CCC
  • AAA
  • PWA
  • TVA
  • NRA
• Second New Deal


  A collection of more radical legislation that looked to considerably alter the way America worked
• The First New Deal had done much to tackle some of the most urgent needs of the American people, but there was much reform that was needed
• Landslide victory in the 1934 mid-term elections was a vote of confidence for FDR and the New Deal
• Works Progress Administration (WPA)

  A major umbrella agency providing a variety of forms of work. Unique aspect, in that it included projects that focused on arts.
• Federal Arts Project


  1. December 1933 - federal government began a long involvement in the arts

  2. It employed 6,600 people, made up of everyday professionals, but also notable writers such as Saul Bellow, who went on to win the Nobel Prize for Literature

  3. By 1937 - thousands of artists had created 15,000+ pieces of art (inc. murals, paintings and posters) most of which was done through the Federal Arts Project
• Federal Music Project


  1. Aimed to project high quality music

  2. WPA Federal Music Project sponsored many New York City musical groups that appeared on the local city radio station, WNYC

  3. Included WNYC Concert Orchestra

  4. Followed up by the WPA Music Program (1939-43)
• Federal Writers Project


  • Aimed to offer employment to out-of-work teachers, librarians and writers
  • Aim was to give work more relatable to their skills, as opposed to manual work through the CCC
• Federal Writers Project output


  • American State Guides (aiming to illustrate American life in each state - the most lasting impact of FWP) and America Eats (food and eating habits - origins of cuisine, regional specialities)
  • Oral histories, e.g. interviews with former slaves, Native Americans and immigrants
  • FWP - published over 275 books and 700 pamphlets
• In addition to the cultural based projects, the WPA constructed huge numbers of buildings and roads. It employed 3m people in 1938 alone. Mainly racially segregated.
• The Wagner Act


  • Gave trade unions basic rights.
  • The Wagner Act gave the collective bargaining right back to trade unions, along with responsibilities to individual workplaces.
  • Trade Unions had previously had this right under the National Industrial Recovery Act (1933) – but this had been revoked by the Supreme Court (1935)
  • National Labor Relations board also created to ensure systems followed
• The Wagner Act was arguably a reward for trade unions' support as Democratic supporters
• The Wagner Act provided basis for modern US labour relations – supported by Guffey-Snyder Act 1935 and Guffey-Vinson Act 1937 – setting of minimum wages in coal
• But – Wagner Act excluded agricultural and service workers, public employees and those employed outside interstate commerce – thus many black Americans, Hispanics and women received little benefit
• Social Security Act 1935


  • Frances Perkins, first female cabinet member, created
  • Pensions paid between $10-$85 p/m
  • Unemployment benefit $18 p/w for 16 weeks
  • Funded by equal employer and employee contributions
• Previously, no pension system but other countries did - Germany – 1889, Britain – 1908
• The Social Security Act was a major break with the past – unemployment now federal, not state responsibility
• But the Act was not completely comprehensive – excluded farm workers, domestic servants and self-employed – those who need it most
• The Revenue Act 1935


  • Passed to help pay for unemployment relief schemes
  • Increased the rate of federal income tax from 63%-79% on incomes of $5m+
  • Put taxes onto property sales
• Raised an additional $250m p/y – but this was a tiny sum compared to total government investment in the relief schemes
• Fewer than 1 in 20 paid federal income tax, and were therefore didn't get taxed under the Revenue Act (most only paid state income)
• More of a political showpiece, than fundamental change - thwarted 'Share Out Wealth'. Majorly criticised by the wealthy – FDR was from a rich background – called a 'class traitor'
• Resettlement Administration


  Moved families badly affected by the Dustbowl (severe dust storms that were ruining the economy)
• 45,000 families relocated from Oklahoma, Texas and Kansas
• Rural Electrification Administration (REA)


  Provided low-interest loans to rural co-operative electricity companies to allow them to provide electricity
• Increased electrification of farms from c.10%-40% (1930-45)
• The Second New Deal was generally well received - evidence - FDR increased his lead in 1936 presidential election
• Radical alternatives failed
• Many of the Alphabet Agencies provided jobs