Opposition to the New Deal
The New Deal isn’t doing enough!
• Many Americans still desperately poor
– Worst hit were blacks & poor farmers
• Key figure: Dr. Francis Townsend
– Old Age Revolving Pension Plan
– Campaigned for $200/month pensions for 60
yrs, providing they spent it in same month,
thus stimulating the economy
• Key figure: Father Coughlin
– National Union for Social Justice
– Catholic priest
– He was specific in calling for silver
inflation, vague on all others
– Used weekly radio address called “Golden
Hour of the Little Flower “ to attack FDR
– He increasingly voiced anti-semetic and
profascist views
– Movement faded in early ’40s after Vatican
instructed him to stop his attacks
Huey Long
– 1928: Governor of Louisiana
– 1932: Senator of Louisiana
– Gained power through legal & illegal means
(intimidation & bribery)
– Used power to help the poor
– Relentlessly taxed big businesses in state
– Used $$$ to build roads, schools, hospitals
– Employed blacks equally w/ whites
– At first supported New Deal, later said ND too
complicated & not doing enough
• ‘Share the Wealth’ scheme, ‘Every man a king, but
no wears a crown!’
– Personal fortunes max @ 3 million
– Yearly income max @ 1 million
– Gov’t taxes shared w/ all Americans
– Pensions for all over 60 yrs.
– Every family gets minimum yearly wage of $2000
and $5000 for house payment
– Free washing machines & radios for everyone
• FDR considered him one of two most dangerous men in
America until Long was assassinated in 1935
Opposition from the Supreme Court
• Supreme Court most powerful opponent
– Dominated by anti-ND Republicans
– Could overturn ND laws as unconstitutional
• MAY 1935: Schechter Poultry Corp.
found guilty of violating NIRA
regulations
–
–
–
–
Sold diseased chickens for people to eat
Filed false sales claims to inflate value
Exploited workers
Threatened gov’t inspectors
• SC ruled in favor of Schechter on appeal
– Fed gov’t had no right to prosecute company
– NIRA was unconstitutional
– NIRA took too much power away from
states
‘Court Packing Scheme’
• FDR furious
– SC denied laws citizens wanted FDR to use
– FDR asked Congress to expand SC from 9
justices to 15, the new six being pro-ND
• FDR misjudged mood of Americans
– Citizens alarmed at FDR’s grab for power
– Feared FDR attacking American system of
gov’t
– FDR had to back down
• ‘A switch in time saves nine’
– Less obstructionist from Fall ’35 onward
– 7 justices retired allowing FDR to shape
future.
– Most Second New Deal measures approved
by SC in 1937
Relief
Emergency Banking
Act, 1933
Federal Emergency
Relief Act, 1933
Public Works
Administration, 1933
Works Progress
Administration, 1935
Civilian Conservation
Corps, 1933
Tennessee Valley
Authority, 1933
Recovery
Reform
National Recovery
Act, 1933
Glass-Steagall
Banking Act,
1933
Home Owners
Loan Corp, 1933
Securities
Exchange Act,
1934
Federal Housing
Administration,
1934
Agricultural
Adjustment Act,
1933 and 1937
Social Security
Act, 1935
National Labor
Relations Act,
1935
Fair Labor
Standards Act, 1938