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 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