The Second New Deal

The massive injection of government funds into the economy did not end the Depression, though many of the programs brought temporary relief to thousands of people, and Roosevelt’s confident demeanor did give people hope. For a time it seemed as if every step forward would bring a reaction from businessmen and other conservatives, and critics on both the right and the left attacked FDR with increasing frequency. Roosevelt critics included men such as Father Charles Coughlin, a conservative Roman Catholic priest whose weekly radio show was heard by millions of listeners. Father Coughlin had initially supported the New Deal, but then became increasingly critical of the administration’s failure to institute reforms.

Another vigorous anti-Roosevelt activist was Dr. Frances Townsend, who created a plan calling for all persons over sixty years of age to get $200 per month if they promised not to work; they would have to spend it within thirty days. Financing would come from a 2 percent national sales tax. Townsend Clubs eventually reached a membership of 2 million Americans, and in 1936 his followers aligned themselves with the Union Party.

The most formidable opponent of Roosevelt, however, was Senator Huey P. Long, the former populist governor of Louisiana. Rising from an impoverished background, Long was a self-made politician who quickly became a legend in his own time. Struggling against conservative Louisiana Democrats, Long was willing to invest heavily in programs for the state. He oversaw construction of thousands of miles of roads and provided free books for schoolchildren. He also helped convert Louisiana State University into a fine institution of learning and added a medical school to its programs. In addition he strengthened the economic foundations of the city of New Orleans by providing for additional infrastructure.

Long’s motto was “Every Man a King”; his nickname was “The Kingfish.” Although he had supported Governor Roosevelt’s bid for the presidency in 1932, he became disenchanted when he felt that Roosevelt was not moving far enough to the left. He began to see FDR as a front man for capitalists and started attacking him. (FDR reportedly declared that Huey Long was “one of the most dangerous men in America.”) Long came up with a plan called “Share Our Wealth”; in essence the idea was to tax estates and incomes in excess of $1 million up to a rate of 100 percent and to guarantee to every American a home, an automobile, and an education through college. Long might have given Roosevelt serious trouble in the election of 1936, though it’s unlikely he could ever have won, but he was assassinated in 1935 by a disgruntled physician.Huey Long was portrayed as the character Willie Stark in Robert Penn Warren’s classic novel All the King’s Men. A film based on the novel won the Academy award for best picture in 1949, and a recent version (2006) stars Sean Penn as Huey Long.

Responding to the fact that people were still suffering, as well as to his critics, Roosevelt launched what became his Second New Deal. In 1935 Congress passed the National Labor Relations Act, which created the National Labor Relations Board. The act defined unfair labor practices and granted workers the right to bargain collectively through unions. It also prevented business owners from interfering with union matters. The NLRB supervised collective bargaining, administered elections, and ensured workers the right to choose their own union.

The most long-lasting and, according to Roosevelt, most important product of the New Deal was the Social Security Act of 1935. The act was a government insurance program for aged, unemployed, and disabled persons based on contributions by employers and workers. Critics complained that the Social Security system violated American traditions and might cause a loss of jobs. Although payments are made by the federal Social Security Administration, they are funded by payroll taxes on wages, which are paid by workers and their employers. Initial benefits were quite modest, ranging from $10 to $40 per month. Today, however, Social Security is one of the largest and most far-reaching programs administered by the federal government.

Although Social Security was never designed to be a full retirement system, many people have come to see it as just that, and attempts to modify or reform Social Security are generally met with strong opposition. As the baby-boom (post-World War II) generation approaches retirement, fears exist that payments made into the system will be insufficient to keep pace with the expanding aging population, although the age for collecting benefits has been raised in recent years. Thus a measure of the persistence of the New Deal’s legacy is the fact that Social Security is still central to the ongoing political debate in the country. Lobbying groups such as the AARP have kept the issue in the public eye.

Another important component of the Second New Deal was the Works Progress Administration (WPA), which over the course of its lifetime built hundreds of buildings, bridges, roads, airports, schools, and other public buildings such as post offices. By the time it ended during the Second World War, more than 9 million people had been employed by the WPA. Cornerstones of many buildings still in use bear the WPA imprint.

A New Deal for the Indians

In 1924 all American Indians were granted American citizenship. For over a century the development of Indian and white relations had centered around one basic dilemma: Should the Indians be “Americanized” and separated from their cultural surroundings to become everyday American citizens? Or should the Indians be encouraged to remain on reservations or in other protected areas so that they could continue to live according to their cultural traditions? The answer, of course, is that for much of American history, Indians have followed both paths. Some have become assimilated, and some have resisted assimilation. The topic remains controversial within Indian cultures, and it must be kept in mind that existing American Indian cultures are still quite diverse today. (As of 2006 there were 562 federally recognized American Indian Tribes in the United States.)

An example of a cultural issue that reflects Indian diversity is the ongoing debate over Indian “mascot” names. Many tribes object to the use of Indian names or symbols by athletic teams. On the other hand, the Seminole Tribe in Florida has no objection to the use of their name by Florida State University. As is true with most cultural issues, there are various sides to the story.

Many people assumed that the granting of citizenship to Indians would complete the process of assimilation. But many Indians continued to live on reservations and were more dependent than ever upon the government for much of their welfare. Forced assimilation had proved destructive to Indian cultures and did not provide a suitable economic basis upon which Indians could live their lives. Franklin Roosevelt appointed Indian reformer John Collier as Commissioner of the Bureau of Indian affairs. Roosevelt’s Secretary of the Interior Harold Ickes said, “Collier was the best equipped man who ever occupied the office,” as Collier had worked as an Indian reformer for some time and was familiar with many of the problems of Native American culture. Collier hoped to be able to preserve Indian culture and heritage and resolve the complicated issues of Indian lands and Indian government.

In 1934 Congress passed the Indian Reorganization Act (IRA), which reversed the Dawes Act of 1887 that had divided Indian land among private owners and restored tribal ownership. Along with the IRA, Collier used various other New Deal programs to assist the Indians, including the Public Works Administration and the Civil Works Administration. He established an Indian Civilian Conservation Corps, and oversaw the construction of schools and hospitals as well as various training programs. Collier continued to work for the acquisition of new land for Indians and to establishment self-government for those tribes who lived on reservations. He continued his services throughout World War II, finally resigning in 1945. Accepting Collier’s resignation with regret, FDR praised his services and commended him for having reoriented government policies toward the Indians.

Text of the Act

Most observers feel that John Collier's motives were of the highest and that he sincerely wanted to help the Native American populations, but more recently a number of historians have criticized the IRA and Collier's administration of it on various grounds. Tribal leaders, for example, have charged that federal programs are just heavy-handed ways of trying to control Indians. At present the federally recognized tribes have a formal relationship with the U.S. government, referred to as a government-to-government relationship, based on the fact that the organized Indian tribes living on reservations now possess a sovereignty that is higher than that of the states. In addition to relationships with the federal government, many tribes have special relationships with the states in which they are located. 

Generally, the governing authority on Indian reservations is the tribal government. That means, for example, that if one is on the Navajo reservation in Arizona, one is subject to Navajo law. Indian governments on reservation areas include the full spectrum of generally recognized government agencies, from presidents or chief executives to legislative bodies, courts, administrative and police agencies.

FDR's Second Term | Twenties-Depression Home |Twenties | Depression | Updated October 30, 2021