The New Deal support criticisms lasting impacts Support

The New Deal support, criticisms & lasting impacts

Support for the New Deal • FDR took action Hoover wouldn’t; took necessary steps in time of need • Put Americans back to work • Restored faith in banks & stock market • Broad spectrum approach hit Depressionridden economy from many angles

Minority Groups • Mixed support – Some New Deal programs still discriminated against women & minorities – Many minorities saw improvements & favored the New Deal in general • African Americans – FDR appointed >100 AAs to gov’t jobs – Mary Mc. Leod Bethune & the “Black Cabinet”

• Mexican Americans – Most worked on farms in SW – Help from CCC & WPA in wages & rights (still faced discrimination & fewer benefits) • Native Americans – Strong support from New Deal; full citizenship – John Collier = Comm. of Indian Affairs – Indian Reorganization Act of 1934 • Restored NA independence • Kept US gov’t from taking reservation land • Children could go to school on reservations

• Women – discrimination – lower pay, fewer hired; many still felt women should not be working (taking jobs from men) – advancements • more married women employed by 1940 (15. 6% up from 11. 7%) • women elected & appointed to gov’t jobs – Frances Perkins = 1 st female Cabinet member – female diplomats & federal judges

Workers/Labor Unions • BIG supporters of FDR & New Deal • Many reforms in workers’ rights & collective bargaining – Wagner Act (NLRB) - unfair practices; settled disputes – FLSA – set max hours & min wage; youth labor • Union membership grew from 3 mil (1933) to 10 mil (1941); mostly coal miners & factory workers

Farmers • Programs like AAA helped crop prices • Bank programs helped avoid foreclosure • TVA & CCC built up rural areas & helped restore the land

Opposition to the New Deal • Not taking the right approach to fix economy (either too far or not far enough) • Gov’t interfering with free market • Deficit spending – spending more $ than the gov’t collects in revenue – FDR said this was a “necessary evil” at the time

Political Opponents • Conservatives – Spending too much gov’t $ on direct relief – “Socialist” approach to business & the economy (free market wasn’t free anymore) – Gave too much power to the fed. gov’t • Extreme liberals – Didn’t go far ENOUGH – Coughlin, Townsend, Long – all had plans that went even further to ensure relief & more even distribution of wealth

• Supreme Court – struck down National Industrial Recovery Act (which created many New Deal programs) as “unconstitutional” • Executive branch taking legislative power • Federal interference in state affairs (labor/industry & farming) – FDR responded with “court-packing bill” • Said for every SC justice over 70, he should be able to appoint another justice • Would have allowed him to appoint 6 new justices • Did not pass, but SC backed off New Deal programs somewhat

Lasting Impacts of the New Deal • Wrapping up – By 1937, Great Depression deemed “ending” – Congress pressured FDR to scale back; he did; economy sagged (unemployment by 2. 7 mil by 1938); New Deal “over” by 1939 • Gov’t role in industry & economic life – Creating fed. jobs – Regulating supply & demand – Gov’t intervention in labor (NLRB) – MUCH more gov’t spending to do these things – Programs like SSA still exist

• Effects on banking & finance – More gov’t involvement & regulation – FDIC provides insurance for deposits; makes people confident in banks; keeps $ in banks & avoids panic – SEC monitors stock market & stock sales; public companies now required to give full disclosure on stock offerings; avoids uninformed speculation & reckless choices