How Did The Second New Deal Differ From The First

The Great Depression, a period of immense economic hardship and social upheaval, prompted President Franklin Delano Roosevelt to introduce a series of policies aimed at providing relief, recovery, and reform. These policies, collectively known as the New Deal, were implemented in two distinct phases: the First New Deal (1933-1934) and the Second New Deal (1935-1938). While both shared the common goal of alleviating the suffering caused by the Depression, they differed significantly in their focus, scope, and underlying philosophy. Understanding these differences is crucial to grasping the evolution of Roosevelt's approach to combating the crisis and the long-lasting impact of the New Deal on American society.

Shifting Focus: Relief vs. Reform

The First New Deal primarily focused on immediate relief and recovery. Its main objectives were to stabilize the economy, provide jobs for the unemployed, and restore confidence in the financial system. A key feature of this phase was its emphasis on cooperation between the government and the business community, aiming to stimulate economic activity through government intervention and regulation.

In contrast, the Second New Deal shifted its focus towards social and economic reform. While relief and recovery remained important goals, the Second New Deal aimed to address the root causes of the Depression and create a more equitable and just society. This phase was characterized by a greater emphasis on social welfare programs, labor rights, and government regulation of businesses.

Key Differences in Programs and Policies

To further illustrate the differences between the two New Deals, let's examine some of their key programs and policies:

First New Deal (1933-1934)

• Emergency Banking Act (EBA): This act aimed to restore confidence in the banking system by providing federal assistance to struggling banks and regulating banking practices. It declared a "bank holiday," temporarily closing all banks to prevent further runs and allowing them to reopen only after being deemed financially sound.
• Agricultural Adjustment Act (AAA): The AAA sought to raise agricultural prices by paying farmers to reduce their production. This was intended to address the overproduction of crops that had driven prices down and hurt farmers' incomes.
• National Industrial Recovery Act (NIRA): The NIRA aimed to stimulate industrial recovery by establishing codes of fair competition, setting prices and wages, and promoting collective bargaining for workers. It also created the Public Works Administration (PWA), which funded large-scale public works projects to create jobs.
• Civilian Conservation Corps (CCC): The CCC provided jobs for unemployed young men in conservation projects, such as planting trees, building trails, and fighting forest fires. It was one of the most popular and successful programs of the First New Deal.
• Federal Emergency Relief Administration (FERA): FERA provided direct relief to the unemployed through grants to state and local governments.

Second New Deal (1935-1938)

• Works Progress Administration (WPA): The WPA replaced FERA as the primary provider of work relief. It employed millions of people in a wide range of projects, including building roads, bridges, schools, and hospitals, as well as supporting artists, writers, and musicians.
• Social Security Act (SSA): This landmark legislation established a system of old-age insurance, unemployment compensation, and aid to families with dependent children and the disabled. It laid the foundation for the modern American welfare state.
• National Labor Relations Act (Wagner Act): The Wagner Act guaranteed workers the right to organize and bargain collectively, and it created the National Labor Relations Board (NLRB) to enforce these rights. It significantly strengthened the labor movement and led to a surge in union membership.
• Fair Labor Standards Act (FLSA): The FLSA established a minimum wage, a maximum workweek, and prohibited child labor. It provided important protections for workers and helped to improve working conditions.
• Resettlement Administration (RA): The RA aimed to assist poor farmers and farmworkers by providing loans, grants, and job training. It also established model communities for displaced farmers.

Underlying Philosophies: From Cooperation to Regulation

The shift in focus from relief and recovery to reform was also reflected in the underlying philosophies of the two New Deals. The First New Deal was characterized by a spirit of cooperation between the government and the business community. Roosevelt believed that by working together, they could restore economic stability and prosperity. This approach was evident in the NIRA, which sought to establish codes of fair competition in consultation with businesses.

However, as the Depression persisted, Roosevelt became increasingly critical of the business community and its role in causing the crisis. The Second New Deal was marked by a greater emphasis on government regulation and intervention in the economy. Roosevelt believed that the government had a responsibility to protect the interests of workers, consumers, and the poor, even if it meant challenging the power of big business. This shift in philosophy was reflected in the Wagner Act and the Fair Labor Standards Act, which placed significant restrictions on business practices.

Political Context and Opposition

The political context in which the two New Deals were implemented also differed significantly. The First New Deal enjoyed broad support from both Democrats and Republicans in Congress. Roosevelt's popularity was at its peak, and there was a widespread consensus that the government needed to take action to address the crisis.

However, the Second New Deal faced increasing opposition from both the right and the left. Conservatives argued that Roosevelt's policies were too radical and that they were undermining free enterprise and individual liberty. They formed organizations such as the American Liberty League to oppose the New Deal. On the left, some critics argued that the New Deal did not go far enough in addressing the root causes of the Depression and that it was not doing enough to help the poor and the unemployed. Figures like Huey Long and Father Charles Coughlin gained popularity by advocating for more radical solutions.

Impact and Legacy

Both the First and Second New Deals had a profound impact on American society. The First New Deal helped to stabilize the economy and restore confidence in the financial system. It provided jobs for millions of unemployed people and helped to prevent the collapse of the banking system.

The Second New Deal laid the foundation for the modern American welfare state. The Social Security Act provided a safety net for the elderly, the unemployed, and the disabled. The Wagner Act strengthened the labor movement and helped to improve working conditions. The Fair Labor Standards Act established a minimum wage and a maximum workweek.

The New Deal as a whole had a lasting impact on the role of government in American life. It established the principle that the government has a responsibility to promote the welfare of its citizens and to regulate the economy in the public interest. It also transformed the relationship between the federal government and the states, with the federal government playing a much larger role in providing social services and regulating economic activity.

Specific Examples Illustrating the Differences

To further clarify the distinctions, let's delve into specific examples of how the First and Second New Deals approached particular issues:

Agriculture

• First New Deal (AAA): Focused on reducing agricultural production to raise prices. This involved paying farmers to not plant crops or to destroy existing crops. While it did raise prices, it was criticized for being wasteful and for disproportionately benefiting large landowners while displacing tenant farmers and sharecroppers, many of whom were African American.
• Second New Deal (RA): Shifted to assisting struggling farmers and farmworkers. The Resettlement Administration provided loans, grants, and job training to help them improve their livelihoods. It also aimed to relocate farmers from unproductive land to more sustainable communities. This approach acknowledged the social costs of the AAA and attempted to address the needs of the most vulnerable in the agricultural sector.

Labor

• First New Deal (NIRA): Included provisions for collective bargaining but lacked strong enforcement mechanisms. While it aimed to improve labor conditions, it often favored employers and did not effectively protect workers' rights to organize.
• Second New Deal (Wagner Act): Revolutionized labor relations by guaranteeing workers the right to organize and bargain collectively. It created the National Labor Relations Board (NLRB) to enforce these rights and prevent unfair labor practices. This empowered unions and led to a significant increase in union membership, giving workers a stronger voice in the workplace.

Relief

• First New Deal (FERA): Provided direct cash payments to states for relief efforts. While it provided much-needed assistance, it was often criticized for being inadequate and for creating dependency on government handouts.
• Second New Deal (WPA): Shifted to work relief, providing jobs on public works projects. This approach was seen as more dignified and empowering, as it allowed people to earn a living while contributing to the community. The WPA also funded projects in the arts and humanities, providing employment for artists, writers, and musicians.

The Role of Key Figures

The differences between the two New Deals were also influenced by the changing roles of key figures within the Roosevelt administration.

• Raymond Moley: A key advisor to Roosevelt during the First New Deal, Moley favored a more conservative approach, emphasizing cooperation with business and limited government intervention. As the New Deal evolved, Moley became increasingly critical of Roosevelt's policies and eventually left the administration.
• Harry Hopkins: As head of the FERA and later the WPA, Hopkins was a strong advocate for work relief and government intervention to alleviate poverty. He played a key role in shaping the Second New Deal and in pushing for policies that would provide jobs and economic security for the unemployed.
• Frances Perkins: As Secretary of Labor, Perkins was a driving force behind the Social Security Act and the Fair Labor Standards Act. She was a strong advocate for workers' rights and social insurance, and she played a crucial role in shaping the Second New Deal's focus on social and economic reform.

The New Deal and the Supreme Court

The Supreme Court played a significant role in shaping the New Deal. In the early years of the New Deal, the Court struck down several key pieces of legislation, including the NIRA and the AAA, on the grounds that they exceeded the federal government's constitutional authority.

These decisions prompted Roosevelt to propose a plan to "pack" the Court by adding additional justices who would be more supportive of his policies. This proposal was met with strong opposition, and it ultimately failed to pass Congress. However, the Court's resistance to the New Deal gradually diminished, and it eventually upheld the constitutionality of the Social Security Act and the Wagner Act.

Conclusion: A Transformation of American Governance

In conclusion, the Second New Deal represented a significant shift from the First New Deal in its focus, scope, and underlying philosophy. While the First New Deal prioritized immediate relief and recovery through cooperation with the business community, the Second New Deal emphasized social and economic reform through government regulation and the creation of a welfare state. This transformation was driven by the persistence of the Depression, the growing criticism of the business community, and the changing roles of key figures within the Roosevelt administration. The Second New Deal laid the foundation for the modern American welfare state and had a lasting impact on the role of government in American life. The legacy of both phases continues to be debated and reinterpreted, but their significance in shaping the 20th-century United States is undeniable.

Frequently Asked Questions (FAQ)

Q: What was the main goal of the First New Deal?

A: The main goal was immediate relief and recovery, focusing on stabilizing the economy and providing jobs.

Q: How did the Second New Deal attempt to address the root causes of the Depression?

A: It aimed to address the root causes through social welfare programs, labor rights, and government regulation of businesses.

Q: What was the significance of the Social Security Act?

A: It laid the foundation for the modern American welfare state by providing old-age insurance, unemployment compensation, and aid to families.

Q: Why did the Second New Deal face more opposition than the First New Deal?

A: It faced increasing opposition from both conservatives, who felt the policies were too radical, and some on the left, who believed they didn't go far enough.

Q: How did the Supreme Court impact the New Deal?

A: Initially, the Court struck down some key New Deal legislation, but later upheld the constitutionality of landmark acts like Social Security and Wagner Act.