Great DepressionIs 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 lessFinally, 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 ActGov’t provides funds for unemployed, older folks, and needyFirst 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 10th 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 4th term, but died shortly after inauguration

• Conservatives had become concerned that he was becoming too powerful

• After his 4 election, the 22nd Amendment was passed• Limiting president to 2 terms