The New Deal Notes

Background

1. Franklin D. Roosevelt’s New Deal (1933–1939) fundamentally redefined the U.S. government’s role in the economy.
2. For the first time, the federal government became responsible for social welfare, regulation, and employment.
3. While many Americans credited Roosevelt with saving capitalism, others accused him of undermining democracy or doing too little for social justice.
4. Opposition from conservatives, business leaders, populists, and even the Supreme Court shaped the limits of the New Deal and its eventual legacy.

Critics from the Political Right

1. Business and Conservative Opposition
   1. Industrial and financial elites resented government interference in the economy.
   2. The U.S. Chamber of Commerce and American Liberty League (1934) denounced the New Deal as “socialist” and unconstitutional.
   3. Critics argued that Roosevelt’s regulations (e.g., NRA, Wagner Act) discouraged investment and weakened free enterprise.
2. Constitutional Concerns:
   1. Conservatives believed Roosevelt had exceeded his authority by expanding executive power and centralizing control.
   2. The Supreme Court struck down several key programs, including the National Industrial Recovery Act (1935) and Agricultural Adjustment Act (1936), ruling them unconstitutional.

Critics from the Political Left

1. Socialist and Populist Movements
   1. Many radicals believed the New Deal failed to redistribute wealth or challenge corporate power.
   2. Socialist and Communist parties accused Roosevelt of preserving capitalism rather than replacing it.
2. Populist Demagogues
   1. Huey Long (Louisiana): Proposed the “Share Our Wealth” plan, advocating confiscation of large fortunes to guarantee every family a $5,000 income.
   2. Dr. Francis Townsend: Proposed old-age pensions funded by a national sales tax, a precursor to Social Security.
   3. Father Charles Coughlin: A radio priest who blamed bankers and promoted anti-Semitic and isolationist rhetoric; his movement drew millions of listeners before being discredited.