Roosevelt’s Point of View
• According to FDR and the Democrats, what
was the major problem that led to destruction
of the U.S. economy?
• Think bigger than the stock market
Moving against wealth and power
• FDR’s response: higher estate tax, higher
income taxes on the largest incomes, and a
corporate income tax based on profit
• Public Utility Holding Company Act: large
utility operators were forced to give better
prices to consumers; gov’t gained ability to
regulate natural gas and electric companies
Mystery Q: Opponents of the New
Deal
• Review “New Deal” handout and notes
• What would you think the major complaints
about the New Deal would be about?
• Think about the view of Republicans towards
FDR’s New Deal
Opposition to New Deal
Criticism from Left and Right
• People on the right believed the New Deal had
imposed too many regulations on business
• Many right-wing Southern Democrats felt that
FDR expanded the power of the federal gov’t at
the expense of state’s rights
• Roosevelt depended on deficit spending to fund
the New Dealborrowing money for programs
• Start of presidency 1933: US National Debt $22.5
billion
• End of presidency 1945: US National Debt $258.5
billion
Topic: Fight for Industrial
Recovery p. 628
Main Idea Sentence:
Topic: Thunder from the
Right and Left p. 631
Main Idea Sentence:
Moving against
concentrated wealth and
power p. 633
Main Idea Sentence:
Details: National
Recovery Administration
Details: American Liberty
League
Details: FDR’s response to
criticism
Details: Function of NRA
Huey Long
Details: Revenue Act of
1935
Details: Criticism of NRA
Father Charles Coughlin
Details: Public Utility
Holding Company Act
Dr. Francis Townsend
Fight for Industrial Recovery
• National Recovery
Administration—created to
represent the thinking of business
groups
• Function:
– created codes for fair dealing
amongst business and labor,
– codes to keep prices up and a
minimum wage,
– set work hours, number of goods to
be produced
– guaranteed the right of workers to
form unions
Problems with the NIRA
• Develop a list of problems that you could
foresee occurring due to the regulations of the
National Industrial Recovery Act
Controversy over the NRA
• Companies were pressured into following the
NRA guidelines
– Consumers were urged only to buy from businesses
that displayed the “blue eagle”
• Small businesses felt the gov’t was supporting
only big businesses
• Efficient companies disliked the price fixing which
limited competition
• Employers disliked codes that allowed unions and
collective bargaining
– Higher minimum wages and fixed prices meant less
profit for business
The Supreme Court Acts
• By 1935, industrial production actually fell
leading to the loss of support for the NRA
• May 27, 1935 in Schecter v. United States
– Supreme Court declared the NRA unconstitutional
over federal codes trying to control state
commerce/business
• Huge blow to FDR’s Second New Deal
Topic: Fight for Industrial
Recovery p. 628
Main Idea Sentence:
Topic: Thunder from the
Right and Left p. 631
Main Idea Sentence:
Moving against
concentrated wealth and
power p. 633
Main Idea Sentence:
Details: National
Recovery Administration
Details: American Liberty
League
Details: FDR’s response to
criticism
Details: Function of NRA
Huey Long
Details: Revenue Act of
1935
Details: Criticism of NRA
Father Charles Coughlin
Details: Public Utility
Holding Company Act
Schechter vs. United
States
Dr. Francis Townsend
Communist Party
Thunder from the Right
(Conservatives)
• American Liberty League—group of wealthy
Republicans and some Democrats who
wanted to oppose “radicalism, preserve
property rights, and preserve the
Constitution.”
– Wanted to teach the respect for the rights of
person and property
Al Smith
• Helped form the American Liberty
Leaguedefend the principles of
laissez-faire
• The gov’t should leave business
alone
• Believed FDR’s New Deal limited
free enterprise undermining basic
freedoms of Americans
Thunder from the Left (Liberals)
• Huey “Kingfish” Long
– Senator and Governor from
Louisiana who wanted to attack the
rich
– SHARE OUR WEALTHfederal gov’t
confiscates all incomes over $1
million
• Give every American family
$5,000 and every American
$2,000 annually
• Over 27,000 “Share Our Wealth”
clubs were organized across the
country
Father Charles Coughlin
• “Radio Priest” attracted 30 to 45
million American listeners weekly
• Claimed FDR settled with the
bankers
• Called for heavy taxes on the
wealthy
• Capitalism was deadcalled for
nationalization of banks and
utilities
Dr. Francis Townsend
• Concerned about the plight of the
elderly
• Townsend Plangov’t would pay
every person over the age of 60 a
pension of $200 a month
• Elderly had to spend the money before
the next checkstimulate economy
• People would retire at 60 to free up
jobs for younger Americans
Tag-Team Defeat?
• Townsend’s program gained most support in the
West
• Long’s support was in the Midwest and South
• Coughlin’s support was in Catholics and the
Northeast.
• Leading into the 1936 election, there was true
question of whether the followers of the left’s
leaders could draw support away from FDR.
– The Union Party was made up of communists and
followers of Townsend, Coughlin , and Long