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Here's How the Great Depression Brought on Social Security | History

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The Second New Deal was underway by the 1936 presidential election. The Republicans nominated Alfred Landon, the governor of Kansas, while the Democrats, of course, nominated President Roosevelt. The election resulted in an overwhelming victory for the Democrats, who won the presidency and large majorities in both houses. The election marked the first time that most African Americans had voted Democratic rather than Republican. It also marked the first time that labor unions gave united support to a presidential candidate. The 1936 election was a vote of confidence in FDR and the New Deal.

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When the Supreme Court struck down the AAA early in 1936, Congress passed another law to replace it: the Soil Conservation and Domestic Allotment Act. This act paid farmers for cutting production of soil-depleting crops. It also rewarded farmers for practicing good soil conservation methods. Two years later, in 1938, Congress approved a second Agricultural Adjustment Act that brought back many of the Dust Bowl recovery features of the first AAA. The second AAA did not include a processing tax to pay for farm subsidies, a provision of the first AAA that the Supreme Court had declared unconstitutional.

The Second New Deal also attempted to help tenant farmers, sharecroppers, migrant workers, and many other poor farmers. The Resettlement Administration, created by executive order in 1935, provided monetary loans to small farmers to buy land. In 1937 the agency was replaced by the Farm Security Administration (FSA). The FSA loaned more than $1 billion to help tenant farmers become landholders. It also established camps for migrant farm workers, who had traditionally lived in squalid housing.

The FSA hired photographers such as Dorothea Lange, Ben Shahn, Walker Evans, Arthur Rothstein, and Carl Mydans to take many pictures of rural towns and farms and their inhabitants. The agency used their photographs to create a pictorial record of the difficult situation in rural America.

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History Brief: The Works Progress Administration (WPA)

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What is the National Labor Relations Act? | Union Facts Friday Episode 16

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The Second New Deal also included laws to promote rural electrification and to regulate public utilities. In 1935 only 12.6 percent of American farms had electricity. Roosevelt established under executive order the Rural Electrification Administration (REA). The REA financed and worked with electrical cooperatives to bring electricity to isolated areas. By 1945, 48 percent of America’s farms and rural homes had electricity. That figure rose to 90 percent by 1949.

The Public Utility Holding Company Act of 1935 took aim at financial corruption in the public utility industry. It outlawed the ownership of utilities by multiple holding companies—a practice known as the pyramiding of holding companies. Lobbyists for the holding companies fought the law fiercely, and it proved extremely difficult to enforce.

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REA starts stringing wire across rural America