The Second New Deal: Addressing Criticisms and Expanding Programs
The Second New Deal (1935–1938) shifted the federal government's focus from short-term relief toward long-term reform. It responded directly to critics who argued the First New Deal hadn't done enough to reduce unemployment or address economic inequality, and it produced some of the most durable legislation in American history.
Expansion of New Deal programs
Roosevelt launched several major programs during this phase, each targeting a different gap in the recovery effort.
- The Works Progress Administration (WPA) became the largest New Deal employment program, putting roughly 8.5 million people to work between 1935 and 1943. Projects ranged from building roads, bridges, and public buildings to funding arts, theater, and writing programs.
- The National Youth Administration (NYA) gave part-time jobs and educational support to young people aged 16–25, helping them gain work experience while staying in school.
- The Rural Electrification Administration (REA) extended electric power to rural areas that private utility companies had ignored because they weren't profitable. By 1945, roughly 40% of American farms had electricity, up from about 10% in 1935. This transformed daily life and opened up new economic possibilities for rural communities.
Beyond these programs, the Second New Deal also produced sweeping legislation with effects that persist today, including the Social Security Act, the Wagner Act, and the Fair Labor Standards Act (covered below).
New Deal's impact on minorities
New Deal programs offered real benefits to minority groups, but those benefits were uneven and often came alongside discrimination.
Women gained some workforce access through programs like the WPA and NYA, yet they frequently received lower pay than men for comparable work. The Social Security Act initially excluded domestic workers and agricultural laborers, two categories where women (especially women of color) were heavily concentrated.
African Americans received employment and relief through various programs, but discrimination and segregation were common within those same programs. The Agricultural Adjustment Act (AAA) hit Black sharecroppers and tenant farmers especially hard: when landowners were paid to reduce crop acreage, they often evicted their tenants rather than sharing the payments. Still, the New Deal era spurred greater political organizing among African Americans. Groups like the National Negro Congress (founded 1936) pushed for civil rights and equal treatment within federal programs.
Native Americans saw a significant policy shift with the Indian Reorganization Act (IRA) of 1934, which reversed the assimilationist approach of the Dawes Act. The IRA encouraged tribal self-government, cultural preservation, and economic development. However, not all tribes supported it; some viewed it as another form of federal control, and its implementation varied widely. The Civilian Conservation Corps (CCC) employed many Native Americans, though some projects involved construction on lands that held cultural or spiritual significance, creating tension.
Key legislation and lasting effects
Social Security Act (1935)
This act created the foundation of the American social safety net. Its three main components:
- Retirement benefits for workers aged 65 and older, funded through payroll taxes shared by employees and employers
- Unemployment insurance, providing temporary income to workers who lost their jobs through no fault of their own
- Aid programs for dependent children, the elderly poor, and people with disabilities
Social Security remains one of the most significant pieces of legislation in U.S. history. It didn't cover everyone at first (farm workers, domestic workers, and the self-employed were excluded), but subsequent amendments expanded its reach considerably.
Wagner Act / National Labor Relations Act (1935)
- Guaranteed workers the right to organize unions and engage in collective bargaining without employer interference or retaliation
- Created the National Labor Relations Board (NLRB) to enforce these protections and mediate labor disputes
- Union membership surged after its passage. By 1945, roughly 35% of non-agricultural workers belonged to a union, up from about 13% in 1935
Fair Labor Standards Act (1938)
- Set the first federal minimum wage (25 cents per hour) and capped the standard workweek at 44 hours (later reduced to 40)
- Banned child labor in most industries, ensuring children could attend school rather than work in factories or mines
- Has been amended many times since 1938 to raise the minimum wage and broaden coverage
Labor and Economic Reform
Together, these laws reshaped the relationship between workers, employers, and the federal government. Collective bargaining became a legally protected right, giving organized labor real leverage to negotiate wages, benefits, and working conditions. Public works spending put money directly into local economies, stimulating demand during the Depression's worst years.
The Second New Deal also expanded the government's role in ways that outlasted the Depression itself. Programs like Social Security and agencies like the NLRB established the expectation that the federal government would provide a baseline of economic security and workplace protections. That expectation became a permanent feature of American political life.