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In: Economics

What are some key components of the New Deal that affected the relationship between workers and their employers?

What are some key components of the New Deal that affected the relationship between workers and their employers?

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Expert Solution

The New Deal resulted in a broad range of federal programs that worked on providing economic relief to the suffering, regulate private industry, and grow the economy. The New Deal is often represented by the “Three Rs”: they stand for relief , recovery and reform .

Roosevelt’s New Deal stretched the scope and nature of the federal considerably, and in doing so fundamentally restructured American political culture along the principle that the govt is liable for the welfare of its citizens.

Four of the key components that changed relationship between the workers and employees dramatically were:-
a)The Works Progress Administration (WPA), which employed many Americans publicly works projects, from constructing bridges and roads to painting murals and writing plays. This was unlike earlier where such a provision was not provided for the unemployed.
b)The Wagner Labor Relations Act, which guaranteed workers the proper to make unions and bargain collectively. This ensured that workers could collectively state their grievances and demand reform from their employers.
c)The Social Security Act, which required workers and employers to contribute—through a payroll tax—to the Social Security fund . That fund, in turn, makes monthly payments to retirees over the age of 65, also on the long-term disabled. This ensured that there was better work security.
d)The Fair Labor Standards Act, which mandated a 40-hour work week (with time-and-a-half for overtime), set an hourly wage , and restricted child labor. Hence the problem of over-exploitation dramatically went down even though there were unreported instances.

Hence the New Deal certainly improved the working conditions of the laborers who were provided more job security and the power of unions which was not available earlier.


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