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Opposition to the New Deal

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 program Philosophical differences Political challenges.

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Opposition to the New Deal

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  1. Opposition to the New Deal

  2. Focus Question • Identify three criticisms faced by Barack Obama since he became president in January 2009.

  3. New Deal Opposition • New Deal faced opposition from both left and right • Transformative program • Philosophical differences • Political challenges

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

  5. Constitutional Arguments • The New Deal created a new relationship between the government and the people • Greatly expanded governmental power • Several early programs ran afoul of the Supreme Court

  6. Threat to Business • The New Deal reversed the 1920s • Provided for regulation of industries • Provided for organized labor • Promised certain labor standards • Fair Labor Standards Act of 1938

  7. American Liberty League • Formed in 1934 • Prevent New Deal from “subverting” the U.S. • Economic arguments • Political arguments • Largely funded by big business

  8. Liberal Opposition • New Deal did not go far enough • Maintained too much of the capitalist system • Did too much for business • Did too little for the unemployed and the poor

  9. Dr. Francis Townsend • Addressed issues of poverty among elderly • Proposed a national pension • Must retire at 60 • Would be paid $200 monthly • Must spend all the money • Paid for by a 2% national sales tax • Led to Social Security

  10. Huey Long the “Kingfish” • Ran the Democratic machine of Louisiana • Proposed a “Share Our Wealth” program • Provide a $5000 salary for every family • Paid for by confiscating the wealth of the rich • Tried to tap desperation

  11. Father Charles Coughlin • Detroit “Radio Priest” • Popular radio host • Pushed for nationalizing banks • Attacked the New Deal • Depression caused by “International bankers” • FDR controlled by “International bankers” • Removed from radio by the Catholic Church

  12. 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

  13. Court Packing Scheme • Proposed a change to appointing justices • President to appoint a new justice for each justice over 70 • FDR could then appoint 6 new justices • Incredible public outrage • Bill went down in defeat • Seen as an overreach

  14. Modern Objections The New Deal record has found itself under fire • Did not end the Great Depression • Unemployment remained above 14% until 1941 • Stock Market did not recover until 1947 • Vastly built the size of the Federal Government • Appeared to transfer power from state governments • Violated idea of a “limited government” preferred by some • Challenged the Capitalist economic system • Laissez-faire approached rejected in light of the Depression • Major government involvement in the economy • “Safety-net” features removed risks and rewards

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