Second New Deal

Questions on the assignment?

READ FOR WEDNESDAY:

Steven M. Gillon, "That's Not What We Meant to Do" Reform and Its Unintended Consequences in Twentieth-Century America (New York: W. W. Norton, 2000), ch.1. ON CANVAS.

From last time:

Civil rights:  Why no anti-lynching bill? Even at a time when racist attitudes were rampant, Americans backed such legislation. So why did it fail? (The answer is on page 130 of the Johnson book -- the role of Walter White.  No not that one.)

• The New Deal tolerated discrimination
• Example: The 1934 National Housing Act creates FHA to insure mortgages. It redlined black communities (Johnson 114).

Crime control was not part of the 100 Days, but Congress did pass some significant crime legislation.

• National Firearms Act of 1934 -- machine guns
• Anti-Racketeering Act of 1934 defined racketeering as any act or threat of violence committed to divert or interfere with interstate commerce.
• Growth of the FBI  and the rise of J.Edgar Hoover (start around 10:00)

Toward the Second New Deal

During FDR's first two terms, unemployment never dropped below 10 percent, which was the peak level of the Great Recession (2007-2009).

Long, Coughlin, Townsend -- political danger on the populist flank

Labor discontent:

• NRA industry codes -- corporatism falls short
• AFL versus CIO

Leads to Wagner Act (Johnson 118-120)

• NLRB to hear and resolve labor disputes through quasi-judicial proceedings and hold secret-ballot elections to decide representation..
• Forbade unfair labor practices as setting up a company union and firing or otherwise discriminating against workers who organized or joined unions.
• Barred employers from refusing to bargain with any NLRB-certified union
• SCOTUS upholds it in 1937.
• Wagner Act both reflects and reinforces union power.

Supreme Court steps in Johnson 127-128)

• Schechter Poultry nixes NIRA.  Even Cardozo called the law "delegation run riot"
• US v Butler nixes AAA

Social Security Act of 1935

• Why payroll tax?
• Look at your paystub.  FICA (Federal Insurance Contributions Act) is what Social Security takes out
• Why the emphasis on making it look like an annuity? Earned or deserved benefits.
• "A regressive tax with a progressive benefit schedule" (Derthick, 255).  Why not simply finance it out of general revenues?
• What was the controversy over a reserve?
• "Pay as you go" -- meaning?
• What did they overlook? Also this. (Example of black swans and unanticipated consequences)
• Age and generational conflict
• Whom did it leave out at first? 
• Farmworkers
• Domestic workers

Election of 1936

• Humprhey's Executor limits appointment power IN THE NEWS RIGHT NOW.