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FDR’s
first
fireside
chat on
the bank
crisis.
(March
12,
1933)
• Roosevelt declared a “bank holiday”, closing every bank in
the nation for eight days.
• Congress then
passed the
Emergency Banking R
, which only allowed
banks to open if they
had enough funds to
pay their depositors.
III. Reforms to
prevent another
depression
Radical Reactions to the New Deal
• Believed the New Deal did not go far enough in reforming the
economy
• Wanted a complete overhaul of capitalism
• Huey P. Long, Father Charles Coughlin, Dr. Francis Townsend
Father Coughlin:
· He criticized FDR
on his radio show
for not taking
stronger action
against bankers and
rich investors.
Criticism of the
New Deal
Francis Townsend:
• He proposed giving
every American over
age 60 a pension of
$200 per month.
Liberty League:
· It complained that
the New Deal
interfered too much
with business and
people’s lives.
FDR and the
Supreme Court
The Conflict:
· The Supreme
Court ruled that
many New Deal
laws were
unconstitutional.
Ex.) AAA
· Many Americans,
including New Deal
supporters, felt that FDR
was unfairly trying to
control the Supreme
Court.
Economic Theory
• British economist John Maynard Keynes argued that deficit
spending could provide jobs and stimulate the economy.
• The economy did begin to rebound in the summer of 1938.
The New Deal had mixed success in
rescuing the economy, but it
fundamentally changed Americans’
relationship with their government.
• 1952, Herbert Hoover
• New Deal failed because it “attempted to collectivize the American system of life.”
The New Deal changed the link between the American people and
their government.
Roosevelt believed that government could help businesses and
individuals achieve a greater level of economic security.
The New Deal required a much bigger government.
Americans now began to look regularly to government for help.
Relief Recovery Reform
• Millions of • Not as successful • More successful
Americans at economic and long-lasting
enjoyed some recovery
• FDIC restored
form of help. • Unemployment public confidence
• Direct relief or remained high. in the nation’s
jobs that • Some critics banks.
provided a argued that • SEC restored
steady paycheck Roosevelt public confidence
• Programs such needed the in stock markets.
as Social support of big
• New Deal left
Security and business.
thousands of
unemployment • Other critics said roadways,
insurance that the New bridges, dams,
became a fixture Deal didn’t spend public buildings,
of government. enough money. and works of art.
Relief programs gave aid to millions of people, but they were
not meant to be a permanent solution to joblessness. Also,
they did not provide jobs to everyone who needed one.