Ch 15 Sec1 Part II- The New Deal

comes under attack

Deficit Spending• More $ was spent on the New Deal than the gov. received in revenue

• National Debt increased, no balanced budgets

• FDR – “necessary evil” during crisis

John Maynard Keynes• British economist

• Gov. should spend to provide $ for consumers

• Deficit Spending is necessary to stimulate the economy.

• “Priming the Pump”

Liberal Critics• Criticism of The New Deal from the political left

• Socialist and Communist

• The New Deal did not go far enough to help the poor and reform the econ. system

Conservative Critics• Too much time on direct relief

• FDR socialized the economy…big gov.

• AAA + NIRA gave gov. too much control

• interfered with free-market

Supreme Court Reacts

• 1935 NIRA Unconstitutional

• Gave FDR lawmaking power

• 1936 AAA Unconstitutional• Agriculture is a local matter to be regulated by the states

FDR Court Packing Scheme

• 1937 “Court Packing Bill”

• 6 additional Justices

• FDR faced a storm of protests

• Due to retirement FDR eventually got his way.

Three Fiery Critics•Father Charles Coughlin

•Dr. Francis Townsend

•Huey Long

Two Demagogues

• Demagogues - Leaders who manipulate people with half- truths, deceptive promises, and scare tactics.

Father Charles Coughlin• Roman Catholic Priest

• Radio Show that combined political, economic, and religious ideas

• Audience 40-45 million

• Initial Supporter of FDR

Father Charles Coughlin II

•Wanted a guaranteed annual income and nationalization of banks

•Anti- Semitic

Dr. Francis Townsend• Physician and Health Officer

• Long Beach. CA

• FDR did not help the poor and elderly

• Monthly pension benefits to the aged - $200 over 60

Huey Long “King Fish”• Senator from Louisiana• Early supporter of the New

Deal• Presidential Ambitions• “Every Man a King!”• Share our Wealth Plan - SOW

27,000 clubs, 7.5 million • Assassinated in 1935

FDR Looks Ahead

• He realized more needed to be done to help the people and solve the economic problems

• The Second New Deal or Second Hundred Days