Roosevelt and the New DealThe New Deal Coalition

Roosevelt’s Second Term

The New Deal Coalition was made up of supporting groups that wanted to see Franklin Delano Roosevelt re-elected in 1936. They included African Americans and women and others who had benefited from FDR’s new deals.◦ The dramatic shift in party allegiance by African Americans

was part of a historic political realignment triggered by FDR’s New Deal.

The Court Packing Plan

After re-election Roosevelt tried to pass a bill (court packing plan) that would allow him to replace 6 of the 9 judges sitting on the Supreme Court. Angry judges struck down the plan as unconstitutional which made Roosevelt look bad.

The Roosevelt RecessionFDR also chose to cut spending by $2

billion and tried to balance the budget which caused unemployment to rise again. These two events weakened Roosevelt politically.◦Henry Morgenthau favored balancing the

budget and cutting spending. “Keynesianism” (John Maynard Keynes): theory that the government should spend heavily during a recession to “jump start” the economy and then balance the budget when the economy is doing well.

The Last New Deal Reforms

The last of the New Deal programs were to help those who could not afford a mortgage ◦The National Housing Act established the

United States Housing Authority, which received $500 million to subsidize loans for builders willing to buy blocks of slums and build low-cost housing.

◦The Farm Security Administration gave loans to tenant farmers to purchase farms of their own

◦The Fair Labor Standards Act helped workers of industry by establishing a 40 hour work week

The Legacy of the New Deal

The legacy of the New Deal was not that it ended the great depression. It didn’t! ◦ The New Deal started many new programs that are still in

tact today in one form or another that provide a safety net for citizens against economic disaster. The new deal also changed the way Americans portray the government’s involvement in private interests and economic interventions.

Essay Question

Discuss the New Deal’s legacy, including its effectiveness in dealing with the Depression and its lasting effects on the role of government.

Essay Question

Discuss the New Deal’s legacy, including its effectiveness in dealing with the Depression and its lasting effects on the role of government.

The New Deal had only limited success in ending the Depression. Unemployment remained high, and economic recovery was not complete until after World War II. Even so, the New Deal gave many Americans a stronger sense of security and stability. The New Deal tended to operate so that it balanced competing economic interests. Business leaders, farmers, workers, consumers, homeowners, and others now looked to government to protect their interests. This “broker” role in mediating among competing interests has continued under the administrations of both parties ever since. Also, the New Deal programs created a “safety net” that protected people against economic disaster. After the Roosevelt years, the American people felt that the government had a duty to maintain this safety net, even though it required a larger, more expensive federal government.