ROOSEVELT’S NEW DEAL: Successes and Failures Learning Target #4 Discuss FDR’s New Deal programs and the successes and criticisms of the New Deal. Be sure to include the impact of specific New Deal programs.

TROUBLE FOR THE NEW DEAL ROOSEVELT’S SECOND TERM  FDR frustrated by courts rulings against New Deal programs plan to reorganize courts, power to appoint new judges, expand Supreme Court “Court-Packing Plan” – FDR argued changes needed to make courts more efficient critics believed plan would upset balance of power giving too much power to President…again! RECOVERY SETBACKS  Fall sharp drop in the stock market  end of million more Americans unemployed  FDR wanted to decrease deficit spending deficit – government spends more money than it takes in through taxes and other income

TROUBLE FOR THE NEW DEAL RECOVERY SETBACKS cont.  rise in unemployment FDR asks for large sums of money to help unemployed  Keynesian Economic Theory (FDR’s spending supported this theory economic theory promoted a balanced budget and less government intervention belief that deficit spending would provide jobs deficit spending would also stimulate the economy government should play a major role in economic management …….Keynesian Economics in a nutshell One person spends his moneyThat money goes towards another person’s earnings that person then spends his earnings that person’s spending supports another person’s earnings

Here is what really happened………  people hoarded their money during the Depression – lots of fear and panic  circular flow of money stopped – nobody spending or making money Keynes argued that it would then fall upon the government to increase spending or “prime the pump”

IMPACT OF THE NEW DEAL Were the goals met?  Relief Programs billions of dollars put back into the pockets of Americans millions received direct relief from the government jobs, social security, unemployment insurance  Recovery Programs economic recovery a little less successful unemployment fell then rose again in some New Deal programs hurt business confidence some argued real unemployment reduction would have required spending billions more  Reform Programs much more successful and long term results FDIC – restored confidence in banks SEC – confidence established in the stock markets new roads, bridges, dams, public buildings – legacy of New Deal

IMPACT OF THE NEW DEAL CHANGE IN RELATIONSHIP  changed relationship between the American people and the government new bureaucracies and agencies new role meant much bigger government – more power new programs – more government control people looking to government for help – both a blessing and a curse END OF THE NEW DEAL  court-packing and economic downturn in brought an end to the New Deal era  some members of Congress wanted the President to cut taxes, balance the budget and return power to the states  Americans also looking at a new issue that arose – Europe appeared to be headed towards another war  workers returned to factories to support industry and war effort