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Chapter 25, Section 3 Reaction to the New Deal
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The New Deal encouraged a sense of hope among Americans The New Deal failed to end the depression ▫Protest against it could be heard throughout the land
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Angry Voices Most critics of the New Deal wanted government to do more Few wanted it to do less
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Huey Long Turned on the president His motto was “Share the Wealth” ▫Called for heavy taxes on the rich Use the tax money to provide every family with a house car and a decent annual income.
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Francis Townsend A California doctor Wanted everyone over age 60 to get a pension of $200.00 a month ▫These people would have to retire freeing up jobs
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Father Coughlin A catholic priest known as the radio priest Criticized FDR for not taking a stronger action against bankers and rich investors
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Liberty League A conservative group complained the New Deal interfered with business and people’s lives
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FDR and the Supreme Court Roosevelt and his advisors defended the New Deal by comparing the depression to a national emergency
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Striking Down New Laws Supreme Court ruled that the Industrial Recovery Act was unconstitutional ▫Gave too much power to the president and to the federal government Court then struck down the Agricultural Adjustment Act and nine other New Deal laws
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FDR Strikes Back Roosevelt put forth a plan to reshape the federal courts ▫Raising the number of justices on the Supreme Court from 9 to 15 He could then appoint 6 new judges who supported his programs
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Howls of protest Both supporters and critics of the New Deal saw his move as a threat to the separation of powers In the end Roosevelt withdrew his proposal
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Changes on the Court During his years in office FDR got to appoint 9 new Justices more than any other president since George Washington
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Labor Reform; Growth of Unions Wagner Act; protected American workers from unfair management practices, such as firing a worker if he or she joined a union Guaranteed collective bargaining; the process in which a union representing a group of workers negotiates with management for a contract
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Labor Reform; Growth of Unions Helped union membership grow from 3 million to 9 million in the 1930’s Became a powerful force in politics
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Labor struggles Employers continued to try to stop workers from joining unions Sitdown Strike: stopped all machines and refused to leave the factories
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A minimum wage Fair Labor Standards Act set a minimum wage of $0.40 an hour and a maximum of 44 hours per week Banned children under the age of 16 from working
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Social Security In the 1930’s the U.S. was the only major industrial nation that did not have a system of pensions for retired people
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Social Security Act: passed in 1935 3 Parts 1. Set up a system of pensions for older people ▫A. Supported by payment from employees and employers 2. Unemployment insurance ▫A.Received small payments until you found work again 3. States got money to support dependent children and people with disabilities
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Critics Worried about the increased power of the federal government Deficit spending; government spent more than it took in from taxes ▫Increase in the national debt
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Critics Business leaders claimed the New deal was making unions too powerful It was not bringing economic recovery
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Supporters Argues that the government must meet the need of all people Believed government must regulate industries like banking to prevent another depression
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