First Action Campaign promise = balance the budget Economy Act
Two Theories Keynsian Economics “Prime the Pump” Borrow and spend money… To create jobs Run up large deficits Pay debt later Supply Side Economics Tax cuts and breaks Businesses reinvest Jobs created Benefits “trickle down”
The Hundred Days “FDR Push” = New Programs: Relief = people in need Recovery = for the economy Reform = never happen again
Collaboration Read Chapter 24.1 (p.624 – 631) Research your programs Record your findings (poster!) Share with others
Final Legislation Second AAA (AAA2): – “ever normal granary” – Crop insurance Fair Labor Standards Act – Maximum hours – Minimum wage – Overtime pay – No child labor
Recovery and Recession Economy = slow, steady, shaky 1937 = deficit fears Roosevelt actions: 1. Less spending 2. Lays off workers 3. Social Security tax Effect: Recession! Back to Keynes! Public fears!
Packing the Court (9 15) Legislation = reorganize fed courts Add 6 to SC Stated rationale True rationale Senate Backlash Effect – New Deal support suffers 15?
Democratic Purge Conflict Primary = anti- speeches, letters by FDR 1938 elections Effect – No Congressional support NEW DEAL IS OVER!
New Deal Impact 1. Great Depression 2. Modern Government