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Opposing the New Deal (Overview)
Opposition to the New Deal began even before Franklin D. Roosevelt was
elected president. Incumbent president Herbert Hoover, a Republican,
maintained that Roosevelt's political philosophies defied traditional American
values. During the 1932 campaign, Hoover argued that Roosevelt's plans
would be detrimental to business and free enterprise. However, Roosevelt
easily won the election of 1932 and set his New Deal into motion,
encountering a variety of challenges along the way.
Business Leaders and the Wealthy
The New Deal appealed to the poor and to working men and women who
benefited from new government programs and new government spending.
The wealthy, on the other hand, had a lot to lose. Taxes could cut into their
incomes and inheritances. Unions could cut into the profit margins of their companies. Roosevelt's Revenue Act,
passed in 1935, brought higher estate and gift taxes, higher income taxes for the wealthiest, and a graduated
corporate tax. Many rich people felt that Roosevelt, who had been born into a wealthy family, was a traitor to the
upper class.
Roosevelt and the Supreme Court
Roosevelt soon found that one of the biggest challenges to New Deal legislation would come from another branch of
the federal government. In Schechter Poultry Corp. v. United States (1935), the U.S. Supreme Court declared the
National Industrial Recovery Act unconstitutional and invalidated the National Recovery Administration (NRA). The
Court stated the act was unlawful because it delegated legislative power to the executive branch and sought to
regulate businesses that were entirely within state jurisdiction. In 1936, the Court declared the Agricultural Adjustment
Administration (AAA) unconstitutional, maintaining that efforts to help farmers should be made at the state level and
that such federal programs as the AAA violated states' rights. Eleven of the 16 laws passed within the First Hundred
Days of the New Deal were also later found to be unconstitutional by the Supreme Court.
In 1937, Roosevelt sent a plan to Congress to reorganize the federal courts. His plan would have given the president
the power to increase the number of justices from nine to 15 if the justices refused to retire by the age of 70.
Roosevelt's "court-packing " plan was aimed at coercing the Court to approve his New Deal legislation. The Senate
rejected the plan, which left much of Congress embittered with the president and his demands.
Radical Opposition
Among the most fervent enemies of the New Deal were some who began as its friends. Huey Long, a popular
senator and former governor of Louisiana, supported Roosevelt in the election of 1932. However, Long soon became
convinced that New Deal legislation did not go far enough in redistributing the nation's wealth. Long proposed to limit
fortunes to no more than $3 million and to limit incomes to no more than $1 million annually with his "Share the
Wealth" program. The taxes his proposed system imposed on the rich would be distributed to build schools, pay oldage pensions, and guarantee wages for the working class.
Father Coughlin, a priest and radio personality, told the American public in 1932 that their choice was "Roosevelt or
Ruin." By 1936, he had changed his tune. Then, he said the slogan was "Roosevelt and Ruin." Coughlin maintained
that Roosevelt had not done enough to take money from the bankers and give it to the people.
Coughlin joined forces with Gerald L.K. Smith, a supporter of Long and fierce opponent of Roosevelt, and with Dr.
Francis Townsend. Townsend advocated a $200 pension each month to everyone over 60 years old with the
stipulation that they had to spend it within the month. The Townsend Plan, he argued, would take care of the elderly
while stimulating the economy. Townsend did not like the Social Security Act that Roosevelt signed in 1935.
Reelection in 1936
In 1936, Coughlin, Smith, and Townsend agreed on a third-party candidate for president—North Dakota
congressional representative William Lemke. The Republican Party nominated Governor Alf Landon of Kansas and
outspent the Democratic Party by $14 million to $9 million during the campaign. Nonetheless, the three-way race
ended with a resounding victory for Roosevelt. Roosevelt won 61% of the popular vote and all of the electoral votes
except Maine and Vermont.
By 1938, the New Deal was coming to an end. Roosevelt turned toward foreign affairs as a second world war was
brewing abroad. Massive government spending during World War II would ultimately bring an end to the Great
Depression. However, Roosevelt's New Deal would leave a legacy of federal control over the economy, along with an
assortment of opponents, in its wake.
Select Citation Style: MLA
"Opposing the New Deal (Overview)." American History. ABC-CLIO, 2016. Web. 18 Apr. 2016.
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Entry ID: 1187212