12.5 - Critics of the New Deal
Key facts and dates
The New Deal, introduced by President Franklin D. Roosevelt (FDR) in the 1930s to combat the Great Depression, faced significant opposition from various quarters, including political, judicial, and social groups. This timeline captures the critical events and challenges that shaped the contentious response to these reforms.
Timeline of key events
- 1934 – American Liberty League formed to oppose New Deal as socialist and unconstitutional.
- 1935 – Supreme Court rules National Recovery Administration (NRA) unconstitutional in Schechter Poultry Corp v. United States.
- 1935 – Huey Long, a prominent left-wing critic, assassinated, weakening radical opposition.
- 1936 – Supreme Court declares Agricultural Adjustment Act (AAA) unconstitutional in United States v. Butler.
- 1937 – FDR proposes court-packing plan to add justices, sparking fierce opposition.
- 1937 – "Switch in time that saved nine" as Justice Roberts begins upholding New Deal laws.
Conservative and business opposition to the New Deal
The New Deal faced intense criticism from the political right, particularly from business leaders and conservative politicians who viewed Roosevelt's policies as a dangerous overreach of federal power. This opposition stemmed from fears that the reforms threatened traditional American values of free enterprise and individual liberty.
Key sources of conservative criticism
- American Liberty League (1934) - Formed by business leaders and conservative Democrats, including 1928 Democratic nominee Al Smith, this organisation attacked the New Deal as socialist, claiming it undermined free enterprise and represented an unconstitutional expansion of government authority.
- Business opposition to NRA and labour laws - Many in the business community saw the National Recovery Administration (NRA) codes, which regulated production and prices, and new labour legislation as government tyranny, restricting their ability to operate freely.
- Republican opposition in Congress - Although limited by their minority status, Republicans consistently opposed New Deal measures, arguing they centralised too much power in Washington.
- Conservative media criticism - Various newspapers and commentators echoed business concerns, portraying the New Deal as a step towards communism and a betrayal of capitalist principles.
Supreme Court challenges and the constitutional crisis
The judiciary emerged as a significant barrier to the New Deal, with the Supreme Court striking down key legislation. This opposition created a constitutional crisis, threatening the survival of Roosevelt's reform agenda.
Judicial opposition to New Deal programs
- The "Four Horsemen" - A group of four conservative Supreme Court justices who consistently voted against New Deal legislation, viewing it as an overstep of federal authority.
- Schechter Poultry Corp v. United States (1935) - The Court declared the NRA unconstitutional, ruling that it represented an improper delegation of legislative power to the executive branch, undermining a cornerstone of Roosevelt's recovery plan.
- United States v. Butler (1936) - The Agricultural Adjustment Act (AAA), designed to stabilise farm prices, was ruled unconstitutional, with the Court arguing that it exceeded federal powers over agriculture.
- Other rulings - The Court also struck down state minimum wage laws and other New Deal regulations, creating a pattern of resistance that jeopardised further reforms.
FDR's court-packing plan and its consequences
Frustrated by the Supreme Court's obstruction, Roosevelt proposed a controversial plan to reshape the judiciary in his favour. This move sparked significant backlash but ultimately led to a shift in the Court's stance.
Details of the court-packing controversy
- Proposal in 1937 - FDR suggested adding up to six new justices to the Supreme Court, one for each justice over 70 who did not retire, ostensibly to assist with the workload of elderly justices.
- Underlying motive - The plan was widely seen as a transparent attempt to create a pro-New Deal majority on the Court, diluting the influence of conservative justices.
- Fierce opposition - The proposal faced criticism not only from conservatives but also from many New Deal supporters, who saw it as a dangerous undermining of judicial independence, leading to its defeat in Congress.
- "Switch in time that saved nine" - In a surprising turn, Justice Owen Roberts began voting to uphold New Deal legislation in 1937, reducing the need for court-packing. This shift, combined with the retirement of conservative justices, allowed FDR to appoint more sympathetic judges, reshaping the Court's direction over time.
Left-wing criticism and alternative proposals
While conservatives attacked the New Deal for going too far, critics on the left argued it did not go far enough in addressing economic inequality. These voices proposed more radical solutions, gaining significant public attention.
Key left-wing critics and their ideas
- Socialist and Communist Parties - These groups criticised the New Deal for failing to fundamentally transform the capitalist system, advocating for full state control of the economy.
- Huey Long's "Share Our Wealth" program - Louisiana Senator Huey Long proposed a radical wealth redistribution plan, guaranteeing every family a homestead allowance of around 2,000-$2,500 through heavy taxes on the rich. His assassination in 1935 prevented this movement from fully challenging Roosevelt.
- Francis Townsend's pension plan - Townsend advocated for a $200 monthly pension for the elderly, funded by a national sales tax, to stimulate the economy through increased spending by seniors.
- Father Charles Coughlin's National Union for Social Justice - A radio priest, Coughlin combined economic populism with anti-Semitic and fascist-leaning rhetoric, initially supporting but later opposing Roosevelt. His influence waned over time, limiting his impact.
- Lack of unified challenge - Despite their popularity, these critics failed to form a coherent third-party challenge to the New Deal due to internal divisions and events like Long's death.
Labour radicalism and African American perspectives
Beyond ideological critiques, the New Deal also faced resistance from specific social groups who felt it did not adequately address their needs or align with their aspirations for change.
Labour militancy and unrest
- Sit-down strikes and violence - Workers, frustrated by economic conditions, engaged in sit-down strikes and sometimes violent confrontations, pushing for rights and reforms beyond what the New Deal envisioned.
- Communist influence in unions - Some labour unions were influenced by Communist organisers, advocating for more radical change and creating tension with FDR's moderate approach.
- Balancing act for Roosevelt - FDR sought to support labour rights through legislation like the Wagner Act, but he also aimed to moderate militancy to maintain national stability, leading to friction with more radical elements.
African American criticism
- Reinforcement of segregation - Many New Deal programs, such as those in housing and employment, often reinforced existing racial segregation, offering limited benefits to black Americans.
- Lack of federal action on lynching - Despite widespread pleas, Roosevelt did not push for a federal anti-lynching law, fearing political backlash from Southern Democrats.
- Limited progress - While Eleanor Roosevelt and some New Deal administrators worked within constraints to provide aid and visibility to African American issues, the overall impact remained restricted, leading to dissatisfaction among black communities.
Historiographical debates on the New Deal's impact
Historians have long debated the effectiveness and intent of the New Deal, offering varying interpretations of its role in American history. These discussions provide a broader context for understanding the criticisms it faced.
Key debates among historians
- Saving or prolonging capitalism? - Some argue the New Deal saved capitalism by preventing economic collapse through reforms, while others believe it prolonged the Depression by interfering with free market recovery.
- FDR's true intentions - Was Roosevelt a pragmatic centrist, balancing competing interests to stabilise the nation, or a closet socialist, pushing for greater government control under the guise of emergency measures?
- Feasibility of radical policies - Historians question whether more radical reforms, as proposed by left-wing critics, were politically possible given the conservative opposition in Congress and the judiciary, as well as public sentiment at the time.