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Effects of the New Deal

Chapter 26

Lesson 4

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The New Deal Draws Fire

  • FDR counted on big business to support plans
  • Business leaders said it cost too much money and gave government too much power
  • Some thought government did not do enough
    • Charles Coughlin
    • Francis Townsend
    • Huey Long

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The New Deal Draws Fire -

Father Coughlin

  • Detroit priest
  • Weekly radio show
  • Called for high taxes on wealthy
  • Gov. take over nation’s banks
  • Attacked Jews, communists, labor unions
  • Derided New Deal for not doing enough
  • Lost support due to extreme views

Father Charles Coughlin

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The New Deal Draws Fire -

Francis Townsend

  • California doctor
  • Called for a monthly pension for retired people
  • Won little support in Congress
  • Did get Americans thinking about how to care for elderly
  • Forerunner of many programs
    • Medicare
    • Social Security

Francis Townsend

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The New Deal Draws Fire -

Huey Long

  • Biggest threat to FDR
  • Governor of Louisiana
  • Used public works to build popularity
  • Won Senate seat in 1930
  • “Share our Wealth” plan called for taxing the rich heavily
  • Give every American a home and $2,500/Year
  • Assassinated in 1936

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Roosevelt’s Second New Deal

  • Mid 30s, depression far from over
  • FDR pushed Revenue Act of 1935
    • Raised taxes on wealthy
    • Taxed corporations
    • Accused of “soaking the rich”
    • Others cheered
  • New set of reforms called Second New Deal

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Creating More Jobs

  • 1 of 5 remained unemployed
  • Congress created Works Progress Administration (WPA)
    • Jobs for 2 million
    • Airports, public buildings, bridges, roads
    • Writers, artists, musicians

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More Help for the Needy

  • 1935 - Congress passed Social Security Act
  • Taxed workers and employers for retired people
  • Taxed employers for unemployment insurance
    • Disabled, elderly, poor
  • Launched larger American welfare system

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The Labor Movement Grows

  • Workers started using sit-down strike
    • Won right to unionize
  • AFL - represented skilled workers
  • CIO - 4 million members including women, blacks
  • National Labor Relations Act - 1935
    • Right to form unions
  • FLSA - minimum wage, child labor

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Roosevelt and the Supreme Court

  • 1935 - Supreme Court started declaring parts of New Deal unconstitutional
  • FDR asked Congress to increase court to 15 justices
  • Attempt to “pack” the court seen as disruption to checks and balances
  • New economic downturn in 1938
  • Overseas events change focus