Opposition to the New Deal
Franklin D Roosevelt was a very popular president. However, as the Great Depression deepened, there was more criticism of the New Deal and Roosevelt’s leadership.
A programme of reform like the New Deal had never been seen in America. There were many successes, but also many setbacks and much scrutiny.
Opposition came from various groups, including some who felt that the New Deal had gone too far and those who thought it hadn’t gone far enough.
Those who thought it had gone too far
Republicans
- One of the two major American political parties. Republicans tend to hold a more conservative viewpoint on politics and society. tended to believe in limited government and When the state avoids intervention in the economy allowing a free market to develop. so they disliked the New Deal’s high level of intervention in the economy. Examples included huge government projects such as the TVA (Tennessee Valley Authority) and the high cost of relief programmes. To some of them, it seemed like America was no different from the The group of 15 communist republics formed from the Russian Empire after the revolution of 1917. with its An economic system in which all means of production such as tools, factories and raw materials, are owned by the community as a whole. Each individual contributes according to their ability and receives according to their needs. This means there is no hierarchy of social class. economic plans.
- Republicans also criticised the New Deal for its budget When a government spends more money than it collects in taxes. and thought money was being wasted on unnecessary jobs.
The wealthy
- The New Deal brought about increased taxes through the 1935 Revenue Act, commonly known as the Wealth Tax Act. Its opponents also called it the ‘Soak the Rich’ tax.
- Roosevelt openly criticised the greed and selfishness of ‘economic royalists’, as he labelled them. This led many wealthy Americans to regard him as a traitor to his class.
Businesses
- Many business leaders disliked how much the New Deal intervened in business and industry practices. For example, the NRA (National Recovery Administration) had the power to regulate wages, determine working hours and set prices.
- Some business leaders resented the growing power of workers and A trade union is a type of organisation whose main purpose is to represent the interests of employees in a specific type of business. resulting from measures such as the 1935 National Labor Relations Act (known as the Wagner Act). This gave workers the right to join a trade union.
- Many employers resented that they had to partly fund the cost of the Financial assistance given by the state to individuals with a very low income or none at all. and A sum of money paid to people upon their retirement. provisions.
- The American Liberty League was created by wealthy businessmen and People who prefer to keep to old ways and only reluctantly allow changes in traditional beliefs and practices. politicians who saw the New Deal as a threat to A system in which private business operates mainly without government intervention or control.
Those who thought it had not gone far enough
Some critics insisted that the New Deal was not doing enough. They said that it had not solved the problems of the Great Depression.
Huey Long
One opponent was Huey Long, the A person who is elected to lead a state’s government in the USA. of Louisiana. In 1934, Long announced a social and economic reform plan called Share Our Wealth. This included a guaranteed minimum wage and limits on the personal fortunes of the very wealthy. Long promised to make "every man a king".
By early 1935, Long had gained around 7.5 million supporters and he planned to run against Roosevelt in the 1936 presidential election. However, he was Murder for religious or political reasons. in September 1935.
Dr Francis Townsend
Dr Francis Townsend set up an organisation called the Old Age Revolving Pension Plan. Townsend proposed that everyone over the age of 60 who was retired should get a pension of $200 a month provided they spent this money. This would provide jobs for the unemployed and a stimulus to the economy.
Father Charles Coughlin
Father Charles Coughlin, known as the radio priest, was initially a supporter of Roosevelt. However, Coughlin became a fierce critic, accusing Roosevelt of failing to tackle the problems of the poor. He set up the National Union for Social Justice, which promised work and fair wages for all. He was mainly influential through his weekly broadcasts, which are estimated to have attracted over 30 million listeners.
The Supreme Court controversy
Although Long, Townsend and Coughlin had their supporters, Roosevelt still won the 1936 presidential election. The most serious opposition he faced to his plans came from America’s The ultimate court of appeal in the USA. It makes the final decision on whether a law is permitted by the US Constitution.
New Deal agencies such as the NRA (National Recovery Administration) and the AAA (Agricultural Adjustment Agency) were declared If something is unconstitutional, it means that it breaks rules about how the US government should be run. by the Supreme Court. It argued that:
- the agencies had overstepped the powers of the Part of the government of the USA as a whole rather than relating to an individual state. government
- the federal government could not impose laws on the individual state governments.
By 1936, the Supreme Court had ruled against 11 out of 16 of the so-called alphabet laws. Roosevelt was concerned that more of the New Deal might be struck down too.
- In 1937, he tried to enlarge the court by ‘packing’ it with six new The name given to a judge who sits in the Supreme Court. who might be more supportive.
- His plan backfired.
- He was criticised by members of his own party, his supporters, One of the two major American political parties. Republicans tend to hold a more conservative viewpoint on politics and society. and his opponents and was accused of acting like a A cruel and oppressive ruler.