Second New Deal

The Second New Deal (1935–36) is the term used by commentators at the time and historians ever since to characterize the second stage, 1935-36, of the New Deal programs of President Franklin D. Roosevelt. In his address to Congress in January 1935, Roosevelt called for five major goals: improved use of national resources, security against old age, unemployment and illness, and slum clearance, as well as a national work relief program (the Works Progress Administration) to replace direct relief efforts. It is usually dated 1935-36, and includes programs to redistribute wealth, income and power in favor of the poor, the old, farmers and labor unions. The most important programs included Social Security, the National Labor Relations Act ("Wagner Act"), the Banking Act of 1935, rural electrification, and breaking up utility holding companies. The Undistributed profits tax was only short-lived. Liberals in Congress passed the Bonus Bill of $1.5 million to 3 million World War veterans over FDR's veto. Liberals strongly supported the new direction, and formed the New Deal Coalition of union members, big city machines, the white South, and ethnic minorities to support it; and conservatives—typified by the American Liberty League—were strongly opposed. Few liberal programs were enacted after 1936; Liberals generally lost control of Congress in 1938. Programs continued for a while. Many were ended during World War II because unemployment was no longer a problem. These included the WPA, NYA and the Resettlement Administration. Social Security, however, survived and expanded.