The Impact of the New Deal Flashcards
The first new deal faced much opposition:
describe opposition from the right?
- Many of wealthy turned against Roosevelt once they felt capitalism had been saved
- partly due to increased taxes - argued fell to heavily on them
- felt gov to involved in economy
- Republican party still associated with failures of early 1930s - thus lack of opposition to Roosevelt
- Also faced opposition from the Liberty League: was supported by members of RP and D
The first new deal faced much opposition:
describe opposition from the right: Liberty League?
- organised in April 1934
- by many Conservative D as well as R to promote private property and private enterprise unregulated by law
- attacked Roosevelt throughout New Deal years
- formed basis of right wing opposition against him
- July 1936: 125,000 members
- less significant after election
The first new deal faced much opposition:
describe opposition from the left?
- R more worried about left
- because they might join together to from 3rd party to challenge him in next election
- advocated radical schemes such as “Old Age Revolving Pensions Incorporated”
- some popular leaders inc Huey Long and Father Charles Coughlin
opposition from the left: Who was Huey Long?
- governer of Louisiana
- organised massive public works programmed
- and ambitious adult literary schemes
- began to talk of joining forces with other radicals to form a 3rd party to oppose R in 1936 election
- a secret poll found up to 4 million people might vote for him in 1936
- gunned down in sep 1935
The first new deal faced much opposition:
opposition from the left:
What was EPIC
- End Poverty in California
- Novelist Upton Sinclair came up with scheme whereby the unemployed would be put to work in state-run co-operatives
- paid currency to spend only in other co-operatives
- for a time his ideas gained credibility
The first new deal faced much opposition:
opposition from the left:
What was ‘Share Our Wealth’
- 1934: Senator Huey Long moved onto national scene with this programme
- advocated that all private fortunes over $3 million - confiscated
- every family should be given enough to buy a house, car and a radio
- there should also be old-age pensions, minimum wages so that every family would be guaranteed $2000-$3000 per year + free college education
- ideas popular
- “share our wealth” clubs grew to 27,431 in number with 4.6 million members spread across the states
The first new deal faced much opposition:
opposition from the left:
Old Age Revolving Pensions Incorporated
- Francis Townsend advocated old-age pensions with difference
- Everyone over 60 years of age not in paid employment should be given $200 a month - as long as all spent not saved
- idea was that it would boost consumption + production - pull US out of depression
- Soon Townsend Clubs had 500,000 members + congress lobbied to put plan into action
- totally impractical - would have needed 50% of national income
The first new deal faced much opposition:
opposition from the left:
- Who was Father Charles Coughlin?
- Priest, whose radio programme, The Golden Hour of the Little Flower - enormously influential during first half of 1930s
- regularly had audience of 30-40 million + listeners contributed more than $5 million per year to his parish in Detroit
- 1934: he founded the National Union for Social Justice with aim of monetary reform + redistribution of wealth
- influence and possible alliance with Huey worried R
- However, increasingly anti-Semitic views lost him support
What opposition did Roosevelt face from the Supreme Court?
- Previous 140 years supreme court found about 60 federal laws unconstitutional; 1935+36 found 11
- only supported New deal in days of crisis
Opposition from the supreme court:
‘Black Monday’?
- 1935
- attacked New Deal in several ways
- found Farm Mortgage Act unconstitutional
- argued removal of a trade commissioner was responsibility of Congress not president
- Found NRA to be unconstitutional after “sick chicken” case
What was the ‘sick chicken’ case?
- 1935
- the Scechter Brothers: a firm of butchers in New York were selling chicken unfit for human consumption
- Prosecuted by NIRA for breaking codes of practice: appealed to Supreme Court
- decided prosecution matter of New York courts and not fed gov
- poultry code declared illegal
- because fed gov could not prosecute individuals for breaking NIRA - the codes must all be unconstitutional
What was the Judiciary Reform Bill?
- Roosevelt presented bill in 1936
- proposed that president could appoint a new justice whenever an existing judge reaching age 70 failed to retire within 6 months
- could also appoint 6 new justices
- Roosevelt seen as a dictator by these measures: scared congress + judges popular
- July Senate rejected by 70 votes to 20
What act did the big businesses hate?
- hated Revenue Acts which raised taxes + opposed to greater gov interference
Roosevelt stance on lynching?
- Called for special congressional session in Nov 1937: delayed due to debates on judicial Reform Bill
What were the economic effects of the new deal?
- In 1938 deficit lower than the $2.5 billion deficit Hoover had run up in 1932
- 1929-1939
- The national total of personal income: $86 billion –> $73 billion: despite population increase of 9 million
- Wages averaged $25.03 a week –> $23.86