Great Depression Is the New Deal a Good Deal?

Let’s look at a few  Tennessee Valley Authority (TVA)  provided jobs building dams on Tennessee River, regional help  Federal Housing Administration (FHA)  Provided help getting mortgages so people could buy homes  Federal Deposit Insurance Corporation (FDIC)  Guarantees bank deposits

Let’s look at a few  Agricultural Adjustment Act (AAA)  Initially paid farmers to grow less  Finally, gov’t bought surplus and stored for later  National Industrial Recovery Act (NIRA)  President could make rules for businesses operating within a state  Social Security Act  Gov’t provides funds for unemployed, older folks, and needy  First time people are dependent on gov’t for help

Problems Do any of these sound like problems? Anything that is unconstitutional?

Not everybody liked the New Deal Conservatives feared that gov’t was getting too involved in business – worried about free-enterprise Supreme Court ruled against some Agricultural Adjustment Act Court said it was not in the federal gov’t power Cited the 10 th Amendment National Industrial Recovery Act Schechter Poultry v US – court ruled crisis doesn’t give president extra powers

FDR Not happy with what the Supreme Court is ruling? Just add more justices that you like…. Court Packing Scheme FDR proposed that we should appoint more supreme court judges for anyone over 70 ½ years old He would have been able to appoint 6 “like-minded” judges It didn’t happen

FDR Forever? Many people liked him He was elected to a 4 th term, but died shortly after inauguration Conservatives had become concerned that he was becoming too powerful After his 4 election, the 22 nd Amendment was passed Limiting president to 2 terms