OCR GCSE History A (J410) — Non-British Depth Studies
Why did Franklin D. Roosevelt change his approach halfway through the 1930s? By 1935, the initial crisis of the Great Depression had passed, but the economy was still struggling. Roosevelt shifted his focus from short-term relief and recovery to long-term Reform.
The Second New Deal aimed to create a permanent social safety net and rebalance the power dynamics between workers and big business. It represented a fundamental shift in the relationship between the state and the people. The government was now taking responsibility for the individual's well-being, moving away from the 1920s belief in Rugged Individualism.
To achieve this, the government relied heavily on the economic theory of Pump-priming. This was the belief that massive government spending would stimulate the economy by putting money into consumers' pockets, who would then create demand for goods. This was implemented through various Alphabet Agencies.
Imagine the government paying artists to paint town murals or historians to interview former slaves. Created in 1935, the Works Progress Administration (WPA) did exactly this, focusing on providing Work Relief rather than simply handing out welfare payments ("the dole").
The WPA operated on a massive scale, employing approximately 8.5 million people between 1935 and 1943. At its peak in November 1938, it employed 3.3 million workers simultaneously. With an expenditure between $11 billion and $13.4 billion, the WPA transformed America's infrastructure. Workers built or improved up to 650,000 miles of roads, constructed 125,000 public buildings (including 4,383 schools), and laid out 8,000 parks.
The WPA was uniquely inclusive for its time. Through "Federal Project Number One," it allocated $27 million to employ actors, artists, and writers. The National Youth Administration (NYA) provided part-time work and education for over 2 million young people aged 16 to 25. Furthermore, the WPA taught 1.5 million illiterate adults to read and write.
Evaluating the WPA:
The modern safety net that protects retirees and the unemployed can be traced back to a single law passed in August 1935. The Social Security Act marked the first time the federal government accepted permanent responsibility for social welfare, laying the foundations for the American Welfare State.
The Act established a contributory scheme funded by a 1% payroll tax on both employers and employees. Its main provisions included:
Evaluating the SSA:
Factory workers in the 1930s often risked losing their jobs or facing physical violence simply for asking for better pay. Officially known as the National Labor Relations Act, the Wagner Act of 1935 radically changed this dynamic.
The Wagner Act guaranteed workers the right to Collective Bargaining and the legal right to form or join trade unions. It outlawed unfair labour practices, including the use of management-controlled "company unions" and blacklisting workers for union activity. The Act also legalised the Closed Shop and created the National Labor Relations Board (NLRB) to police employers and oversee union elections.
Evaluating the Wagner Act:
Setting a legal minimum wage seems normal today, but it was a revolutionary idea during the Depression. The Fair Labor Standards Act (FLSA) of 1938 was the final major piece of New Deal legislation, establishing a federal "floor" for wages and a "ceiling" for working hours.
The FLSA introduced a minimum wage of 25 cents per hour and set a maximum workweek of 44 hours, mandating Time-and-a-half pay for overtime. Crucially, it banned Oppressive Child Labor in most sectors for those under 16. While it secured pay rises for roughly 800,000 of the lowest-paid workers, it initially covered only 20% of the workforce, once again excluding agricultural and domestic labourers.
Meanwhile, the Resettlement Administration (RA) and its successor, the Farm Security Administration (FSA), attempted Rural Rehabilitation. They provided approximately $1 billion in low-interest loans to help impoverished farmers buy equipment and relocate from exhausted Submarginal Land. However, these agencies faced intense political opposition for appearing "socialist" and ultimately only helped about 2% of needy farmers.
Despite its massive scale, the Second New Deal faced fierce criticism from both ends of the political spectrum.
Right-wing critics, such as the wealthy business leaders of the American Liberty League, believed in strict Laissez-faire economics. They called Roosevelt a "Traitor to his class", arguing that his policies destroyed rugged individualism and were unsustainably expensive. The National Association of Manufacturers even compared the Social Security Act to totalitarian social engineering.
Conversely, left-wing figures argued the New Deal did not go far enough. Senator Huey Long proposed a "Share Our Wealth" scheme to confiscate fortunes over $5 million and guarantee families a $2,500 annual income. Dr. Francis Townsend campaigned for a $200 monthly pension for the over-60s, while Father Charles Coughlin used his massive radio audience of 30 million listeners to demand the nationalisation of banks.
When the Supreme Court began striking down early New Deal agencies, Roosevelt responded with the 1937 Judicial Reform Bill, attempting to pack the court with up to six new judges. Critics furiously attacked this as an attempt to become a dictator. Furthermore, when Roosevelt tried to balance the budget in 1937 by cutting WPA spending, the "Roosevelt Recession" hit. Unemployment jumped by 3 million, proving that the American economy was still highly dependent on federal pump-priming.
To reach a balanced concluding judgement on the Second New Deal, one must weigh its revolutionary structural changes against its economic limitations.
Arguments for Success: The Second New Deal was highly effective in terms of Reform. It fundamentally and permanently altered the relationship between the US government and its citizens. By creating the Welfare State through the SSA and legalising Collective Bargaining via the Wagner Act, Roosevelt provided a permanent "safety net" that survived long after the 1930s. It also successfully preserved the morale and skills of 8.5 million people through the WPA, preventing total social collapse.
Arguments for Failure: However, the Second New Deal was less effective in terms of immediate economic Recovery. Unemployment remained a chronic issue, and the "Roosevelt Recession" of 1937 proved that the economy could not yet function without massive government Pump-priming. Furthermore, the reforms were an "incomplete revolution"; by excluding agricultural and domestic workers, the New Deal failed to protect the most vulnerable groups, particularly African Americans and women.
Overall Judgement: Ultimately, while the Second New Deal failed to end the Great Depression (which only ended with World War II mobilisation in 1941), it was a transformative success in creating a more stable and just society. It successfully replaced the failed system of Laissez-faire with a modern federal government that took responsibility for social justice and economic security.
Students frequently confuse the WPA (1935) from the Second New Deal with the PWA (1933) from the First New Deal. Remember that the PWA used private contractors for massive engineering projects, whereas the WPA directly employed millions of workers for smaller, labour-intensive community projects.
In 10-mark or 14-mark 'Evaluate' questions, you must explicitly weigh the successes (e.g., millions employed by the WPA) against the limitations (e.g., unemployment remaining at 6 million in 1941) to form a balanced concluding judgement.
When discussing the limitations of the Social Security Act and the Wagner Act, always mention that they excluded agricultural and domestic workers, as examiners look for an understanding of how these laws failed to protect millions of African Americans and women.
Do not just list the opposition to the New Deal; categorise them logically into right-wing critics (who thought it went too far) and left-wing radicals like Huey Long (who thought it didn't go far enough).
Reform
Long-term measures designed to provide permanent security and prevent a recurrence of the 1929 economic collapse.
Pump-priming
The economic theory that government spending stimulates the economy by increasing consumer purchasing power, creating demand for goods.
Alphabet Agencies
The collective term for the various federal government bodies created by Roosevelt to implement New Deal policies.
Work Relief
Wages provided by the government in exchange for physical labour on public projects, intended to preserve a worker's dignity and skills.
Boondoggling
A derogatory term used by critics to describe government-funded WPA projects they considered useless or a waste of money.
Welfare State
A system where the government takes permanent responsibility for protecting the social and economic well-being of its citizens through pensions and insurance.
Rugged Individualism
The traditional conservative belief that individuals should succeed through their own hard work without relying on government assistance.
Collective Bargaining
The process of negotiation between an employer and a trade union on behalf of all its members regarding wages and working conditions.
Closed Shop
A workplace where the employer formally agrees to hire only workers who are members of a specific trade union.
Time-and-a-half
A premium pay rate for overtime work mandated by the FLSA, calculated as 1.5 times the worker's regular hourly wage.
Oppressive Child Labor
A legal term defined by the FLSA to restrict children from dangerous work or employment that interferes with their schooling.
Rural Rehabilitation
The process of providing government loans and technical training to help impoverished farmers become financially self-sufficient.
Submarginal Land
Exhausted or poor-quality farming land that cannot produce enough crops to provide a profit for the farmer.
Laissez-faire
The economic belief that the government should not interfere in the economy or regulate business.
Traitor to his class
An accusation made by wealthy conservatives claiming that Roosevelt's high taxes and regulations betrayed his own privileged background.
Put your knowledge into practice — try past paper questions for History A
Reform
Long-term measures designed to provide permanent security and prevent a recurrence of the 1929 economic collapse.
Pump-priming
The economic theory that government spending stimulates the economy by increasing consumer purchasing power, creating demand for goods.
Alphabet Agencies
The collective term for the various federal government bodies created by Roosevelt to implement New Deal policies.
Work Relief
Wages provided by the government in exchange for physical labour on public projects, intended to preserve a worker's dignity and skills.
Boondoggling
A derogatory term used by critics to describe government-funded WPA projects they considered useless or a waste of money.
Welfare State
A system where the government takes permanent responsibility for protecting the social and economic well-being of its citizens through pensions and insurance.
Rugged Individualism
The traditional conservative belief that individuals should succeed through their own hard work without relying on government assistance.
Collective Bargaining
The process of negotiation between an employer and a trade union on behalf of all its members regarding wages and working conditions.
Closed Shop
A workplace where the employer formally agrees to hire only workers who are members of a specific trade union.
Time-and-a-half
A premium pay rate for overtime work mandated by the FLSA, calculated as 1.5 times the worker's regular hourly wage.
Oppressive Child Labor
A legal term defined by the FLSA to restrict children from dangerous work or employment that interferes with their schooling.
Rural Rehabilitation
The process of providing government loans and technical training to help impoverished farmers become financially self-sufficient.
Submarginal Land
Exhausted or poor-quality farming land that cannot produce enough crops to provide a profit for the farmer.
Laissez-faire
The economic belief that the government should not interfere in the economy or regulate business.
Traitor to his class
An accusation made by wealthy conservatives claiming that Roosevelt's high taxes and regulations betrayed his own privileged background.
