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Effects of the New Deal
Transcript of Effects of the New Deal
The Second New Deal
By the mid 1930s, the Great Depression was still going.
To keep his government programs going, FDR pushed Congress to pass the Revenue Act of 1935. This act raised taxes on the rich, much to the consternation of his critics.
With this new money in hand, Roosevelt promised Americans a Second New Deal.
More Government Jobs!
20 percent of Americans were still unemployed in 1935. Congress, at FDR's request, created the Works Progress Administration (WPA).
The WPA employed 2 million people repairing infrastructure (roads, airports, bridges, etc).
It also gave money to unemployed artists to decorate public buildings and other fun stuff.
Social Security Act
In 1935, Congress passed the Social Security Act. This act taxed all workers to provide pension money for retired people.
Another tax on employers gave welfare payments to workers who lost their jobs- the birth of today's controversial welfare system.
Wagner/Fair Labor Standards Act
The Wagner act guaranteed workers the right to form workers unions.
Next, in 1935 the Fair Labor Standards act banned child labor.
It also set a minimum wage of 40 cents an hour. Today it is around $8 an hour.
There was one problem for FDR- the Supreme Court began striking down parts of the New Deal, claiming they were unconstitutional.
He then decided to "pack the courts." He asked Congress to increase the number of Supreme Court justices from 9 to 15. Then, since the president has the right to nominate new Supreme Court judges, he put in six new guys who he knew would support the new deal.
This is either clever or scummy or both.
The New Deal Ends
By the end of the 1930s, the Great Depression was still in effect- the economy had gotten slightly better, however the government was in deeper debt due to programs and no end was in sight.
Something is about to shake up the board, however- something in Europe. We will talk about that tomorrow.