1. Franklin Roosevelt’s New Deal:
a. Political career: governor of New York
during the early years of the Depression
b. Political philosophy: government had to
help. Economic policy of pump priming
would be used
c. The “Hundred Days”
1. immediately closed banks to insure
deposits
2. reopened sound banks
3. paid farmers to reduce their crop
production
4. encouraged fair pricing, hours and wages
New Profits
New Jobs
Plant Expansion
New Investment
Increased Demand
New Money in Circulation
Relief payments & temporary jobs on Gov’t Projects
PUMP-PRIMING
The New Deal’s 3 R’s
Relief, Recovery and Reform
Relief: Immediate action to halt the economy’s
Deterioration
Recovery: “Pump-Priming” Temporary
Programs to restart the flow of consumer demand
Reform: Permanent Programs to avoid
Situations causing contractions and insurance for
Citizens against economic disasters
See chart
Roosevelt and the Supreme Court:
1. Two acts declared unconstitutional –
National Recovery Administration
Agricultural Adjustment Act (1933)
The Schetcher Poultry Corp. v U.S.
said that Congress had stretched its
power over interstate commerce.
2. Roosevelt’s response: “Court Packing Plan”
Wanted to add six additional judges to
the Supreme Court. Congress did not
back idea.
Politics of the 1930’s:
1. Changing the Democratic Party - appeal
in South broadened to include
a. Industrial workers
b. Immigrants
c. Blacks
d. Ethnic Americans
e. Liberals
2. Breaking the two term tradition:
Roosevelt was elected in 1932, 1936,
1940 and 1944. This will lead to the
20th Amendment in 1951.
Critics of the New Deal:
1. Socialist Party - Norman Thomas - too
timid about government acts to help the working
class
2. Dr. Francis Townsend: “Old Folks Crusade”
$200 a month pension system
3. Huey Long: “Share Our Wealth” - guarantee
everyone a home, a minimum of $2,500 income,
a free college education and a pension.
Get money by taxing the rich
4. Fr. Charles Coughlin: “Radio Priest” was a
critic of both Hoover and Roosevelt