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Roosevelt’s Point of View

Roosevelt’s Point of View. According to FDR and the Democrats, what was the major problem that led to destruction of the U.S. economy? Think bigger than the stock market. Moving against wealth and power.

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Roosevelt’s Point of View

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  1. Roosevelt’s Point of View • According to FDR and the Democrats, what was the major problem that led to destruction of the U.S. economy? • Think bigger than the stock market

  2. Moving against wealth and power • FDR’s response: higher estate tax, higher income taxes on the largest incomes, and a corporate income tax based on profit • Public Utility Holding Company Act: large utility operators were forced to give better prices to consumers; gov’t gained ability to regulate natural gas and electric companies

  3. Mystery Q: Opponents of the New Deal • Review “New Deal” handout and notes • What would you think the major complaints about the New Deal would be about? • Think about the view of Republicans towards FDR’s New Deal

  4. Opposition to New Deal

  5. Criticism from Left and Right • People on the right believed the New Deal had imposed too many regulations on business • Many right-wing Southern Democrats felt that FDR expanded the power of the federal gov’t at the expense of state’s rights • Roosevelt depended on deficit spending to fund the New Dealborrowing money for programs • Start of presidency 1933: US National Debt $22.5 billion • End of presidency 1945: US National Debt $258.5 billion

  6. Fight for Industrial Recovery • National Recovery Administration—created to represent the thinking of business groups • Function: • created codes for fair dealing amongst business and labor, • codes to keep prices up and a minimum wage, • set work hours, number of goods to be produced • guaranteed the right of workers to form unions

  7. Problems with the NIRA • Develop a list of problems that you could foresee occurring due to the regulations of the National Industrial Recovery Act

  8. Controversy over the NRA • Companies were pressured into following the NRA guidelines • Consumers were urged only to buy from businesses that displayed the “blue eagle” • Small businesses felt the gov’t was supporting only big businesses • Efficient companies disliked the price fixing which limited competition • Employers disliked codes that allowed unions and collective bargaining • Higher minimum wages and fixed prices meant less profit for business

  9. The Supreme Court Acts • By 1935, industrial production actually fell leading to the loss of support for the NRA • May 27, 1935 in Schecter v. United States • Supreme Court declared the NRA unconstitutional over federal codes trying to control state commerce/business • Huge blow to FDR’s Second New Deal

  10. Thunder from the Right (Conservatives) • American Liberty League—group of wealthy Republicans and some Democrats who wanted to oppose “radicalism, preserve property rights, and preserve the Constitution.” • Wanted to teach the respect for the rights of person and property

  11. Al Smith • Helped form the American Liberty Leaguedefend the principles of laissez-faire • The gov’t should leave business alone • Believed FDR’s New Deal limited free enterprise undermining basic freedoms of Americans

  12. Thunder from the Left (Liberals) • Huey “Kingfish” Long • Senator and Governor from Louisiana who wanted to attack the rich • SHARE OUR WEALTHfederalgov’t confiscates all incomes over $1 million • Give every American family $5,000 and every American $2,000 annually • Over 27,000 “Share Our Wealth” clubs were organized across the country

  13. Father Charles Coughlin • “Radio Priest” attracted 30 to 45 million American listeners weekly • Claimed FDR settled with the bankers • Called for heavy taxes on the wealthy • Capitalism was deadcalled for nationalization of banks and utilities

  14. Dr. Francis Townsend • Concerned about the plight of the elderly • Townsend Plangov’t would pay every person over the age of 60 a pension of $200 a month • Elderly had to spend the money before the next checkstimulate economy • People would retire at 60 to free up jobs for younger Americans

  15. Tag-Team Defeat? • Townsend’s program gained most support in the West • Long’s support was in the Midwest and South • Coughlin’s support was in Catholics and the Northeast. • Leading into the 1936 election, there was true question of whether the followers of the left’s leaders could draw support away from FDR. • The Union Party was made up of communists and followers of Townsend, Coughlin , and Long

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