Opposition to the New Deal

This section explains the opposition to Franklin D. Roosevelt’s New Deal. Although Franklin D. Roosevelt became a highly popular president, the New Deal faced significant opposition as the effects of the Great Depression persisted. While the New Deal introduced a transformative set of reforms to address the economic crisis, it also sparked criticism and resistance from various groups. Some believed the New Deal went too far, while others felt it didn't go far enough.

Those Who Believed the New Deal Had Gone Too Far

Republicans

Republicans, particularly those in the conservative wing of the party, were strongly opposed to the New Deal, as it represented a significant shift away from traditional American values of limited government and laissez-faire economics. They argued that Roosevelt’s policies granted too much power to the federal government, which they saw as a threat to free enterprise and individual liberties. Key examples of government intervention that prompted Republican criticism included:

• The Tennessee Valley Authority (TVA): The TVA involved large-scale government-funded infrastructure projects, including the construction of dams and power plants. Republicans believed this was an unnecessary government intervention in the economy, and feared it would lead to the centralisation of power and undermine private enterprise.
• Relief programmes: Critics from the Republican side also disliked the high cost of relief programmes, such as the Civilian Conservation Corps (CCC), which employed millions of young men on conservation projects. Republicans were particularly concerned about the budget deficits incurred by Roosevelt’s administration, believing that government spending was unsustainable and wasteful.

Some Republicans even likened Roosevelt’s policies to those of the Soviet Union, warning that the government’s increased control over the economy might lead the country down a communist path.

The Wealthy

The wealthy elite also opposed the New Deal, largely due to the increased taxation that Roosevelt introduced. The 1935 Revenue Act, also known as the Wealth Tax Act, raised taxes on the rich, aiming to redistribute wealth and fund New Deal programmes. Many wealthy Americans resented the idea of paying higher taxes and felt that they were being unfairly targeted.

Roosevelt’s outspoken criticism of the ‘economic royalists’—his term for the wealthy elite—further alienated the upper class, who saw his rhetoric as an attack on their status and success. For many in the business community, Roosevelt was perceived as a traitor to his class, and his policies sparked widespread resentment.

Business Leaders

Business leaders, particularly those from the corporate sector, were critical of the government’s increasing interference in industry. One key example was the National Recovery Administration (NRA), which aimed to stabilise industrial prices, wages, and working conditions. The NRA had the power to impose minimum wages, maximum working hours, and price regulations. Many business owners resented the loss of control over their own operations and believed that government regulations were stifling economic growth.

The Wagner Act of 1935, which gave workers the legal right to form trade unions, was another point of contention. Many employers felt that this legislation gave too much power to organised labour, enabling workers to demand higher wages and better working conditions.

In response to these concerns, the American Liberty League, a coalition of wealthy businessmen and conservative politicians, was formed. They viewed the New Deal as a direct threat to free enterprise and individual rights and campaigned vigorously against Roosevelt’s policies.

Those Who Believed the New Deal Had Not Gone Far Enough

While some critics felt the New Deal was too interventionist, others argued that it did not go far enough in tackling the causes of the Great Depression. These opponents called for more radical reforms to redistribute wealth, empower the working class, and ensure greater economic justice.

Huey Long

One of the most vocal critics of Roosevelt from the left was Huey Long, the governor of Louisiana. Long’s populist agenda, which he called ‘Share Our Wealth’, gained significant traction among the poor. His plan proposed a guaranteed minimum wage, the redistribution of wealth, and limits on the personal fortunes of the wealthy. Long promised to make "every man a king" and called for a fairer society in which the rich could no longer amass excessive wealth while the poor continued to suffer.

By 1935, Long had gathered a large following, claiming that around 7.5 million Americans supported his plan. He intended to challenge Roosevelt in the 1936 presidential election. However, Long was assassinated in September 1935, which ended his campaign but left a legacy of radical reform ideas.

Dr Francis Townsend

Dr Francis Townsend, a retired physician, also proposed a radical solution to the economic crisis. He advocated for the creation of the Old Age Revolving Pension Plan, which would provide a monthly pension of $200 to all Americans over the age of 60, provided they spent it within the month. Townsend argued that this would not only provide financial support for the elderly but also stimulate the economy by encouraging consumer spending. Townsend’s plan gained a significant following, particularly among older Americans, but Roosevelt did not fully adopt it.

Father Charles Coughlin

Father Charles Coughlin, a Catholic priest and radio broadcaster, initially supported Roosevelt but soon became one of his harshest critics. Coughlin’s radio programme, which reached an estimated 30 million listeners, criticised Roosevelt for not doing enough for the poor. He accused the president of catering to the interests of the wealthy and big business rather than addressing the needs of the working class.

In response, Coughlin formed the National Union for Social Justice, which called for the nationalisation of banks, guaranteed employment, and a fairer distribution of wealth. His anti-Semitic rhetoric and increasingly radical views alienated many, but he remained an influential voice in American politics during the 1930s.

The Supreme Court Controversy

Despite the criticisms from various groups, Roosevelt won re-election in 1936 with a significant majority. However, the most significant challenge to his New Deal came from the United States Supreme Court, which ruled several New Deal policies as unconstitutional. The National Recovery Administration (NRA) and the Agricultural Adjustment Act (AAA) were among the laws struck down by the Court, which argued that they overstepped the federal government’s constitutional powers and violated states' rights.

By 1936, the Supreme Court had ruled against 11 out of 16 major New Deal laws, leaving Roosevelt frustrated. In 1937, Roosevelt proposed a controversial plan to ‘pack’ the Supreme Court by adding six new justices, whom he hoped would be more supportive of his New Deal agenda.

However, this plan backfired. It was widely condemned as an attempt to undermine the independence of the judiciary and concentrate power in the hands of the executive branch. Roosevelt faced fierce opposition from both Democrats and Republicans, and the Court-packing scheme was seen as an overreach by a president who was increasingly accused of acting like a dictator.

Opposition to the New Deal came from both the right and the left, with critics ranging from conservative business leaders and Republicans to more radical figures calling for a redistribution of wealth. While Roosevelt's policies undeniably brought relief to millions of Americans, they also sparked fierce debate about the role of government in economic and social affairs. Ultimately, despite the controversy, the New Deal played a key role in shaping the future of the American welfare state and the relationship between the federal government and its citizens.