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

• 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

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

Opposition to New Deal

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 Dealborrowing money for programs

• Start of presidency 1933: US National Debt $22.5 billion• End of presidency 1945: US National Debt $258.5 billion

Topic: Fight for Industrial Recovery p. 628Main Idea Sentence:

Topic: Thunder from the Right and Left p. 631Main Idea Sentence:

Moving against concentrated wealth and power p. 633Main Idea Sentence:

Details: National Recovery Administration

Details: American Liberty League

Details: FDR’s response to criticism

Details: Function of NRA Huey Long Details: Revenue Act of 1935

Details: Criticism of NRA Father Charles Coughlin Details: Public Utility Holding Company Act

Dr. Francis Townsend

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

Problems with the NIRA

• Develop a list of problems that you could foresee occurring due to the regulations of the National Industrial Recovery Act

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

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

Topic: Fight for Industrial Recovery p. 628Main Idea Sentence:

Topic: Thunder from the Right and Left p. 631Main Idea Sentence:

Moving against concentrated wealth and power p. 633Main Idea Sentence:

Details: National Recovery Administration

Details: American Liberty League

Details: FDR’s response to criticism

Details: Function of NRA Huey Long Details: Revenue Act of 1935

Details: Criticism of NRA Father Charles Coughlin Details: Public Utility Holding Company Act

Schechter vs. United States

Dr. Francis Townsend

Communist Party

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

Al Smith

• Helped form the American Liberty Leaguedefend 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

Thunder from the Left (Liberals)• Huey “Kingfish” Long– Senator and Governor from Louisiana

who wanted to attack the rich– SHARE OUR WEALTHfederal gov’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

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 deadcalled for nationalization of banks and utilities

Dr. Francis Townsend

• Concerned about the plight of the elderly• Townsend Plangov’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 checkstimulate economy

• People would retire at 60 to free up jobs for younger Americans

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