Second New Deal

Second New Deal. This phase of Franklin D. Roosevelt's domestic agenda, launched in 1935, marked a decisive leftward turn in New Deal policy. It shifted focus from economic recovery to structural reform and long-term social welfare, directly challenging concentrated corporate power. The period produced landmark legislation that permanently reshaped the American social contract and the role of the federal government.

Background and context

By mid-1934, the initial First Hundred Days programs like the National Recovery Administration and the Agricultural Adjustment Act faced significant legal and practical challenges. The Great Depression persisted, with high unemployment and labor unrest, such as the 1934 West Coast waterfront strike, growing more pronounced. Influenced by advisors like Harry Hopkins and Harold Ickes, and pressured from the left by figures like Huey Long and his Share Our Wealth movement, Roosevelt sought a more aggressive strategy. This political calculus was also shaped by the rise of Father Charles Coughlin and his National Union for Social Justice, as well as the Supreme Court's looming skepticism toward early New Deal programs.

Major legislation and programs

The core of this legislative surge is often called the "Second Hundred Days." The Wagner Act, formally the National Labor Relations Act, guaranteed workers' rights to collective bargaining and established the National Labor Relations Board. The Social Security Act created a federal system of old-age pensions, unemployment insurance, and aid to dependent children. The Works Progress Administration, led by Harry Hopkins, became the largest public works employer, funding projects ranging from the Federal Art Project to the construction of infrastructure like the Triborough Bridge. Other key laws included the Banking Act of 1935, which reformed the Federal Reserve, the Public Utility Holding Company Act to regulate utilities, and the Revenue Act of 1935, often called the "Wealth Tax Act." The Rural Electrification Administration brought power to isolated farms.

Key figures and political dynamics

While Roosevelt was the central figure, his "Brain Trust" and cabinet were instrumental. Frances Perkins, the Secretary of Labor, was a driving force behind the Social Security Act. Senator Robert F. Wagner championed the pivotal labor law. Harry Hopkins and Harold Ickes vied for influence in administering relief programs like the WPA and Public Works Administration. The political dynamic involved rallying a new coalition—including organized labor, northern African Americans, and urban ethnic groups—while facing opposition from the conservative American Liberty League, which included figures like Al Smith and John J. Raskob. Roosevelt's 1936 campaign against Alf Landon successfully mobilized this coalition.

Impact and legacy

The policies institutionalized the federal government's role in economic security and labor relations, creating what historians call the "New Deal Order." The Congress of Industrial Organizations grew rapidly under the protection of the Wagner Act. Programs like the Social Security Administration and principles of federal work relief became enduring parts of the American welfare state. The era also saw a realignment of the Democratic Party and solidified Roosevelt's electoral coalition, leading to his landslide victory in the 1936 United States presidential election. Culturally, agencies like the Farm Security Administration and the Federal Writers' Project left a profound documentary record of the period.

Criticism and opposition

The agenda faced fierce criticism from multiple fronts. Conservatives and business leaders, organized in the American Liberty League, denounced it as socialist and an unconstitutional expansion of federal power. The Supreme Court initially struck down key measures like the Agricultural Adjustment Act of 1933 in United States v. Butler, prompting Roosevelt's controversial "court-packing" plan. Some on the left, including Huey Long until his assassination and figures within the Socialist Party of America, argued it did not go far enough in redistributing wealth. Later, some economists argued that fiscal policy remained too cautious to fully end the Great Depression, a crisis ultimately resolved by the industrial mobilization for World War II.

Category:New Deal Category:1935 in American law Category:Presidency of Franklin D. Roosevelt