Changes to the New Deal After 1933 (AQA GCSE History)
Revision Note
How Important was the Second New Deal? - Summary
The Second New Deal was an important phase of President Franklin D. Roosevelt's response to the Great Depression. It built on the ideas of the First New Deal. The government needed to further address the social challenges facing the country.
The Second New Deal focused on providing additional support to ordinary US citizens. New programmes like the Works Progress Administration (WPA) created more jobs to tackle unemployment. The Social Security Act (SSA) provided financial assistance to the elderly, disabled and unemployed people.
One important part of the Second New Deal was giving workers more rights. The National Labor Relations Act (NLRA) guaranteed workers the right to organise and bargain collectively. This meant they could join together in trade unions to get better pay and conditions.
The Second New Deal had a lasting impact on American society and politics. It expanded the role of the federal government in providing economic security and social welfare.
Exam Tip
Franklin D. Roosevelt is also known as FDR. Either version is acceptable in your exam answers. Whilst there are many abbreviations in this course, it may help in your exam answers to shorten Roosevelt’s name. When writing an answer, write “Franklin D. Roosevelt (FDR)” once. This will allow you to write “FDR” throughout the rest of your answer.
Why Did the New Deal Change?
By 1935, Roosevelt had to adapt the New Deal because:
He faced growing opposition from:
The Supreme Court banned the National Recovery Association (NRA) and the Agricultural Adjustment Administration (AAA) because Roosevelt had abused his powers as president
Businessmen who felt that the NRA was too expensive
1936 was an election year and although Roosevelt remained popular with the people, he wanted to stop the growing opposition to his policies
Problems continued in the USA
By 1935, 11 million people were unemployed
Workers continued to strike, which impacted the coal, steel and car industries
Second New Deal
The Second New Deal started in the summer of 1935
The Second New Deal was different from the First New Deal
The First New Deal tried to support the recovery of the economy
The Second New Deal aimed to create a significant welfare programme
Features of the Second New Deal
Feature & Impacts of the Second New Deal
Government reform | How did it improve upon the First New Deal? | Impacts & reactions |
|---|---|---|
National Labour Relations Act (1935) | Known as the Wagner Act | The act increased union membership. By the end of the 1930s, over eight million people belonged to unions The Republican Party and businessmen opposed the act. Some employers refused to let their workers join unions |
Replaced the NRA | ||
Encouraged workers to join a trade union | ||
Created the National Labour Relations Board (NLRB) to protect the rights of workers | ||
Soil Conservation Act (1935) | Replaced the AAA | By 1939, soil erosion had been reduced by 65%. Farmers used more sustainable farming practices. This helped farmers and the environment |
Encouraged the planting of grasses, trees or vegetables by subsidising farmers not to grow crops | ||
Resolved issues of soil erosion | ||
Fixed the damage caused by the Dust Bowl | ||
Social Security Act (1935) | Created a national social welfare system which included: old-age pensions, disability payments and unemployment payments (dole money). It also supported widows and orphans | The USA had a welfare system. This brought the USA in line with other Western countries in looking after their citizens Pension payments were low at $85 a month. The system only covered a third of workers. The system did not support farmers or workers in private households |
Works Progress Administration (WPA) | Replaced the PWA in 1935 | It became the USA’s biggest employer. The WPA found jobs in many professions including acting, writing and photography. Some of this work was only temporary. |
Employ 2 million workers a year | ||
National Housing Act (1937) | Provided loans to encourage people to buy houses | Banks offered more generous mortgage deals. Low- and middle-income families could own houses The federal government let the local governments decide where and how to use the funding. As a result, African-American housing remained substandard as local governments were predominately run by white Americans |
Reduced rent prices | ||
Improved living conditions for low-income families | ||
Gave money to local housing agencies to destroy or improve unsafe housing | ||
Fair Labour Standards Act (1938) | Enforced a minimum wage | Over 700,000 workers achieved higher pay. More than 1.5 million people worked fewer hours in a week than before the act |
Limited working hours | ||
Improved working conditions |
Exam Tip
An exam question may ask you to explain if President Hoover or President Hoover had the biggest impact on the effects of the Depression in the USA. This is a 12-mark question that would require you to:
P - Make a point about the question
E - Use evidence that supports the point that you have made
E - Explain why this evidence impacted the Depression. Avoid repeating the point again. Explain how this factor damaged or helped to fix the impacts of the Depression
L - Link your explanation back to the question by stating how significant this factor is for
Concluding your thoughts with a reflection on key concepts. You should consider short- and long-term consequences, importance and impact. For example, Roosevelt’s Alphabet Agencies attempted to tackle the social and economic issues caused by the Great Depression. You could argue that this is the most important reason. Without the Alphabet Agencies, the government would continue their laissez-faire approach and the impacts of the Depression would have worsened.
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