Lesson 3: The Second New Deal

Lesson Focus

Facing criticism and the ongoing Depression, President Roosevelt launched the Second New Deal. This new phase introduced more permanent reforms to aid the underprivileged and secure long-term economic stability, despite facing significant political opposition.

People to Know

Franklin D. Roosevelt, Father Charles E. Coughlin, Huey Long, Dr. Francis Townsend

Learning Objectives

• Identify the influential critics and special interest groups who challenged President Roosevelt and his initial New Deal policies.
• Describe the major reforms of the Second New Deal, such as Social Security and new labor laws, aimed at long-term recovery.
• Explain the political challenges and key events, including the 'court-packing' plan, that ultimately led to the end of the New Deal.

Widespread dissatisfaction with the Depression's slow recovery created an opening for radical critics. Figures like Father Charles E. Coughlin, Senator Huey Long, and Dr. Francis Townsend gained huge followings by proposing wealth redistribution and new pension plans. Their popularity signaled to President Roosevelt that the original New Deal was not enough, pushing him to redirect his efforts toward more permanent, far-reaching reforms to address the needs of the underprivileged.

In response to his critics, Roosevelt launched the “Second New Deal” in 1935, abandoning efforts to win business support. He focused on building a new political coalition of labor unions, farmers, and African Americans who felt left behind. This led to landmark programs like the Works Progress Administration (WPA) for work relief and the Social Security Act, which established a national system of retirement benefits and unemployment insurance.

To empower workers, Congress passed the National Labor Relations Act, or Wagner Act, in 1935. The act created the National Labor Relations Board (NLRB) to protect workers' right to unionize and bargain collectively. This sparked a massive growth in union membership, leading to the formation of the Congress of Industrial Organizations (CIO), which used new tactics like the sitdown strike to organize entire industries and win major victories for workers.

After his landslide reelection in 1936, Roosevelt felt the Supreme Court was blocking his reforms by striking down New Deal laws. In 1937, he proposed a controversial "court-packing" bill to add more justices who supported his policies. The plan failed after facing backlash for threatening the system of checks and balances, and it cost Roosevelt significant political support even within his own party. Pay special attention to this turning point.

A sharp economic recession in 1937 and Roosevelt's failed court-packing plan weakened his political power. A new coalition of Republicans and conservative Democrats formed in Congress to block further New Deal legislation. After his attempt to remove these opponents failed in the 1938 elections, Roosevelt accepted that the era of reform was over. In 1939, he shifted his focus from domestic policy to the growing threat of war in Europe.