The Limits and Legacy of the New Deal

I. Short Term Failures of the New DealA. Political Failures

i. The Supreme Court Rejects Parts of the New Deal

ii. Critics Condemn the New Deal

• Father Coughlin Calls for a Guaranteed Income

• Dr. Townsend Promotes Pensions for the Elderly

• Huey Long Lobbies to Share the Wealth

B. Economic Failure: The Great Depression Continues

II. The 2nd New Deal & More Alphabet Soup

New Deal Program(Date)

Summary Relief, Recovery or

Reform?21st Amendment

(1933)Repeal of prohibition Recovery

New Deal Program(Date)

Summary Relief, Recovery or

Reform?Social Security Act

(1935)Unemployment insurance, aid to dependents, old age pensions

Reform

New Deal Program(Date)

Summary Relief, Recovery or

Reform?Wagner Act (1935) Protects rights of workers to form

unionsReform

New Deal Program(Date)

Summary Relief, Recovery or

Reform?Court Packing Plan Add one justice for every justice over

age 70Attempted Reform

III. The Long Term Legacy of the New Deal

A. African-Americans, Democrats, and the New Deal Coalition

B. The Preservation of Capitalism

C. The Creation of National Welfare

D. The Growth of the Federal Government Spending & Popular Expectations (Example: Keynesianism)

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The Federal Deficit

1933 -$1.3 billion1934 -$2.8 billion1935 -2.5 billion1936 -3.4 billion1937 -0.2 billion1938 -2.0 billion1939 -2.2 billion