New Deal Origins –Sought advice from experts in “Brain Trusts” Academics Economics Business Agriculture Law Social work –Experts had many points of view Spurred debate & arguments –FDR made final decision.
Bank Holiday –Closed 4 days Fed gave loans to secure banks Banks reopen when financially ready
Civil Works Administration Temp. Emergency Jobs –Construction Sewage Systems Bridges Buildings 5 months 4million Jobs 200 million per month (deficit spending)
Glass-Steagall 1933 Separated Banks –Commercial v. Investment Strengthened the Federal Reserve –Ended the gold standard –Determined value of the Dollar
Court Packing Many 2 nd New Deal programs deemed UNCONSTITUTIONAL FDR responds by –Encouraging older Supreme Court justices to retire –Attempting to add more Justices to the Supreme Court Caused negative resentment with other branches of Govt. –Legislative (congress) –Judicial ( Supreme Court)
Anti-New Deal Criticism from the left and right Deficit Spending- Negative budget, unable to balance the budget, adds to national debt. (BAD) American Liberty League- Republican and Democrat opponents of NEW DEAL
Anti-New Deal Huey Long - –Senator from Louisiana –Fiery Speaker –Down home humor –“Share Our Wealth” –3rd party to Run against Roosevelt
Anti-New Deal Father Charles Coughlin –Catholic Priest –Radio show w. 40 million listeners –Heavy taxes on wealthy. Francis Townsend Townsend Plan –Wanted $200 pension to people over 60. –Must be retired –Frees up space for unemployed.
FDR Re-elected 1936 1st time African Americans voted in favor of a Democrat. New Deal Coalition- –African Americans, Immigrants, farmers, labor minorities, women Roosevelt Recession –1937 surge of unemployment (1 st rise under FDR) –WHY?????? –Cut programs (govt spending) Proved people depended on Govt spending too much. –Raised Interest Rates
Legacy Balanced economic interests Federal govt new role Broker State- Govt agent (broker) fixes conflict between different interests Safety net- safeguards for average Americans Made govt too powerful