1. Impact of the New Deal

2. Essential Question
How did the New Deal offer a new approach to confronting the Depression?

3. New Deal: Labor
The greatest growth in union membership took place in the 1930s as a result of the New Deal.
Roosevelt wanted to raise wages to help fight the Depression.
Legislation:
Norris-LaGuardia Act (1932)
National Industrial Recovery Act (1933)
Wagner Act (1935)

4. Reactions to the New Deal
The New Deal was generally popular, but Roosevelt did face some criticisms.
The Liberty League – called Roosevelt a “traitor to his class;” and claimed he was attempting to establish a dictatorship.
Dr. Francis Townsend – didn’t think Roosevelt was doing enough to reform the economy
Called for a $200/month pension for people 65 year and older
Money spent each month would create new jobs and bring an end to the Depression

5. Reactions, Cont.
Huey Long – U.S. Senator, former Governor of Louisiana
Wanted to give each family $5,000 a year, to be paid by taxing the rich
He was assassinated prior to mounting a true campaign against FDR
Father Coughlin - gave radio addresses to millions
Called for the nationalization of banks and utilities

6. The Supreme Court
The greatest threat to the New Deal was the Supreme Court.
The Court ruled both the National Industrial Recovery Act (NIRA) and the Agricultural Adjustment Act (AAA) unconstitutional.
The NIRA allowed FDR the power to set up “codes for fair practices” for businesses involved in intrastate (within a state) commerce.
Schechter Poultry v. U.S. (1937)

7. Court Packing Scheme
After the Schechter verdict, FDR worried about the Supreme Court declaring other New Deal legislation unconstitutional as well.
FDR thought that the justices, mostly over 70 years old, were out of touch with the nations needs.
In 1937, FDR proposed a plan to allow the President to add a new Supreme Court Justice for each current Justice over the age of 70½.
If passed, the plan would have allowed FDR to appoint six new Justices.
These new Justices would have given him control of the Supreme Court.
Congress and the public DO NOT like it!

8. Government Impact
New Deal legislations gave the federal government more power.
Responsibility now includes keeping the national economy running smoothly.
Taxes rose dramatically to fund new projects and agencies.
Some New Deal programs were eliminated following WWII, but some remain today.
New Deal programs established a legacy of government agencies, regulations and procedures that continue today.