Second New Deal

Second New Deal
Name	Second New Deal
Period	1935–1938
President	Franklin D. Roosevelt
Major legislation	Social Security Act, National Labor Relations Act, Wagner Act, Works Progress Administration, Revenue Act of 1935
Preceded by	First New Deal
Succeeded by	New Deal

Second New Deal The Second New Deal was a legislative and administrative phase of Franklin D. Roosevelt's broader New Deal program during the mid-1930s that focused on social welfare, labor rights, and progressive taxation. It produced landmark statutes and agencies that reshaped the relationship between the presidency, federal institutions, and constituencies including labor unions, African Americans, farmers, and urban voters. Key proponents included Roosevelt advisers such as Harry Hopkins, Frances Perkins, and Eleanor Roosevelt, while critics ranged from Huey Long to the Supreme Court of the United States.

Background and context

By 1935 the aftermath of the Great Depression had driven political realignment and policy innovation in Washington, D.C.; earlier measures associated with Franklin D. Roosevelt and the First New Deal—including the Civilian Conservation Corps and Tennessee Valley Authority—had established administrative precedents. The 1934 midterm election successes for Democratic candidates, the activism of figures like John L. Lewis, and the organizing of the Congress of Industrial Organizations pressured the Roosevelt administration toward more redistributive measures. International debates—such as the rise of fascism in Europe, the Spanish conflict at Spanish Civil War, and economic ideas from economists like John Maynard Keynes—also informed policymaking. Judicial setbacks, notably decisions by the Supreme Court of the United States striking down elements of prior statutes, prompted legislative strategizing and alliance-building with congressional leaders such as Senator Robert M. La Follette Jr. and Speaker Joseph W. Byrns Sr..

Major legislation and programs

Legislative achievements in this period included the Social Security Act, which established federal old-age benefits and unemployment insurance; the National Labor Relations Act (popularly the Wagner Act), which protected collective bargaining rights and established the National Labor Relations Board; and expansive relief and employment programs such as the Works Progress Administration (WPA). Fiscal measures like the Revenue Act of 1935 (the "Wealth Tax Act") increased rates on high earners and estates. Agricultural policy adjustments continued under the Agricultural Adjustment Act framework and related commodity programs administered through the United States Department of Agriculture. Public works and cultural projects involved agencies and personalities including the Public Works Administration, Federal Theatre Project, Federal Writers' Project, and artists associated with the Works Progress Administration Federal Art Project. Housing and rural electrification efforts connected to the United States Housing Authority and the Rural Electrification Administration. Banking and financial regulation evolved via institutions such as the Federal Deposit Insurance Corporation.

Political coalition and opposition

Roosevelt's New Deal coalition comprised organized labor, urban ethnics, African Americans, southern whites, and progressive intellectuals; leaders and organizations central to the coalition included A. Philip Randolph, CIO, American Federation of Labor, Tammany Hall, and civic groups in cities like Chicago and New York City. Opposition emerged from multiple quarters: conservative Democrats such as Alben W. Barkley and southern bloc members; Republican politicians including Al Smith-aligned conservatives; populists and demagogues like Huey Long and Father Charles Coughlin who proposed alternative redistribution schemes; and business interests represented by entities such as the United States Chamber of Commerce and industrialists like Henry Ford. Legal challenges were mounted by litigants reaching the Supreme Court of the United States, where justices including Charles Evans Hughes and Benjamin N. Cardozo influenced rulings that affected New Deal policies.

Economic and social impact

Programs under this phase produced measurable effects on employment, incomes, and social welfare infrastructure: WPA projects under administrators like Harry Hopkins and Frances Perkins provided jobs in construction, arts, and public health, affecting cities such as New York City, Philadelphia, and Chicago. The Social Security Act created a safety net for retirees and the disabled, drawing on research from scholars like Charles J. Bonar and policy advice from the Committee on Economic Security. Labor law reforms energized union growth within the United Automobile Workers and the United Steelworkers, aiding industrial mobilization. Agricultural supports and price stabilization influenced regions including the Great Plains and the Mississippi Delta. Critics argued about long-term fiscal burdens, invoking macroeconomic debates involving Milton Friedman and later John Kenneth Galbraith.

Implementation and administration

Administration of Second New Deal programs relied on federal agencies, state governments, municipal officials, and non-governmental organizations. Cabinet members and advisers—Frances Perkins at the United States Department of Labor, Harold L. Ickes at the Interior Department, Harry Hopkins coordinating relief—oversaw sprawling bureaucracies. Congressional committees such as the House Committee on Un-American Activities (later reorganized) and the House Ways and Means Committee scrutinized funding. Local implementation intersected with political machines like Tammany Hall and reformers such as Fiorello La Guardia. Coordination with employers and union leaders, as seen in negotiation episodes involving John L. Lewis and corporate executives in the Steel Workers Organizing Committee, shaped outcomes. Administrative innovations drew on policy research from institutions like the Brookings Institution and scholars at Harvard University and the University of Chicago.

Legacy and historical assessment

Historians and economists have debated the Second New Deal's legacy: it institutionalized social insurance, expanded labor rights, and redefined federal fiscal policy, influencing later legislation such as the Fair Labor Standards Act and mid-century social programs under leaders like Harry S. Truman and Lyndon B. Johnson. Revisionist scholars including Thomas K. McCraw and David M. Kennedy analyzed effectiveness and limits, while critics on the right—political figures like Barry Goldwater and intellectuals associated with The Heritage Foundation—emphasized impacts on entrepreneurship and federal spending. Contemporary scholarship engages transnational comparisons with Welfare state developments in United Kingdom, Germany, and Scandinavia, and examines continuity with wartime mobilization during World War II. The period remains central to debates about federal authority, social justice, and democratic politics in twentieth-century United States history.

Category:New Deal