How Radical was the New Deal? • • • • • • Destroyer of Capitalism? Major government intervention in the economy Massive increases in government spending & debt Social welfare & “entitlement” programs - like Social Security decrease expectation that citizens be totally self-reliant Progressive taxation attacks wealth & success Greatly empowers labor unions Took domestic currency off the Gold Standard Protector/Savior of Status Quo? • Ruined the opportunity for a REVOLUTION! Gave just enough reform to squelch the momentum for a socialist agenda to redistribute wealth & end American capitalism • Crash of ‘29 proves failure of capitalism; New Deal made the capitalist crisis livable • Restored faith in banks • Little progress in improving race relations • Major corporations mostly continue in power – NOT nationalized • Never borrowed/spent enough! “Roosevelt Depression” of 1937 due to cutting spending to balance budget.