OPPOSITION TO THE NEW DEAL

Focus Question Identify three criticisms faced by Barack

Obama since he became president in January 2009.

New Deal Opposition New Deal faced opposition from both left and right

Transformative programPhilosophical differencesPolitical challenges

Conservative Opposition Argued the New Deal was unconstitutional Saw it as a threat to business interests Concentrated power in the Presidency

Constitutional Arguments The New Deal created a new relationship between

the government and the peopleGreatly expanded governmental powerSeveral early programs ran afoul

of the Supreme Court

Threat to Business The New Deal reversed the 1920s

Provided for regulation of industriesProvided for organized labor

Promised certain laborstandards

Fair Labor Standards Act of 1938

American Liberty League Formed in 1934 Prevent New Deal from “subverting” the U.S.

Economic argumentsPolitical arguments

Largely funded by big business

Liberal Opposition New Deal did not go far enough

Maintained too much of the capitalist systemDid too much for businessDid too little for the unemployed and the poor

Dr. Francis Townsend Addressed issues of poverty among elderly Proposed a national pension

Must retire at 60Would be paid $200 monthlyMust spend all the moneyPaid for by a 2% national sales tax

Led to Social Security

Huey Long the “Kingfish” Ran the Democratic machine of Louisiana Proposed a “Share Our Wealth” program

Provide a $5000 salary for every familyPaid for by confiscating the wealth of the richTried to tap desperation

Father Charles Coughlin Detroit “Radio Priest” Popular radio host

Pushed for nationalizing banks

Attacked the New DealDepression caused by “International bankers”FDR controlled by “International bankers”

Removed from radio by the Catholic Church

FDR and the Supreme Court Supreme Court overturned numerous

New Deal Programs FDR saw the Court as an obstacle to the

New Deal Sought a change in his second term Won re-election with a huge mandate

Court Packing Scheme Proposed a change to appointing justices

President to appoint a new justice for each justice over 70

FDR could then appoint6 new justices

Incredible public outrageBill went down in defeatSeen as an overreach

Modern ObjectionsThe New Deal record has found itself under fire Did not end the Great Depression

Unemployment remained above 14% until 1941Stock Market did not recover until 1947

Vastly built the size of the Federal GovernmentAppeared to transfer power from state governmentsViolated idea of a “limited government” preferred by some

Challenged the Capitalist economic systemLaissez-faire approached rejected in light of the

DepressionMajor government involvement in the economy“Safety-net” features removed risks and rewards