How Radical was the New Deal?
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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.