1. Chapter 26, Section 3: Response to the New Deal
Main Idea: As the New Deal came under criticism, Roosevelt launched a series of far-reaching reforms.

2. A. Critics of the New Deal
Some believed the New Deal did too much & went too far. Others felt it did too little & didn’t go far enough.
Senator Huey Long (Louisiana) – his “Share Our Wealth” plan called for heavy taxes on the rich to give to the poor.
Francis Townsend - proposed a pension of $200 per month for the elderly (over 60). This would allow them to retire, which would open up more jobs.
Also, they would spend this money, which would help stimulate the economy.
Father Coughlin - the “Radio Priest” called for government ownership of banks, utilities & natural resources.
Liberty League - complained the New Deal interfered too much with business & with people’s lives. They warned that the government was taking away freedoms & that it was getting too big & powerful.

3. Opponents of the New Deal
The New Deal Is Doing Too Much!
Big business and the Republican party criticized the New Deal:
They felt it was too complicated and interfering
They did not like the support it gave to Unions
They claimed Roosevelt was behaving like a dictator and the New Deal was similar to economic plans used in the USSR (communist)
The New Deal made people rely on government rather than helping themselves. This was “un-American” and went against the Republican idea of ‘rugged individualism’

5. B. FDR and the Supreme Court
In 1935, the Supreme Court declared several New Deal programs unconstitutional (NRA & AAA, then 8 more).
A Plan to Expand the Court
Following the 1936 election, which Roosevelt won in a landslide, FDR wanted to increase the number of Supreme Court Justices from 9 to 15.
6 new justices, named by him, would be liberal & agree with him.
Mixed Results
Both supporters & critics of the New Deal accused him of trying to “pack” the Court with liberal Justices (like him).
This would threaten the balance of power in gov’t. The SC would go from conservative to liberal, making all 3 branches liberal.
FDR finally withdrew his request after 6 months, when he realized that even his allies in Congress were not on board.
FDR’s image was tarnished a bit at the time (seen as power hungry), but eventually he replaced all 9 justices through retirements anyway (he was President for over 12 years!).

6. Opponents of the New Deal : The Supreme Court
VS.
The Supreme Court could overturn laws they felt went against the constitution.
The Supreme Court was dominated by Conservative judges. They served on the court for life and could only be appointed by the President. (a serving president hoped that as many judges as possible retired while he was in office so he could appoint more who agreed with him!)
They said that many of Roosevelt’s New Deal measures were unconstitutional and they closed down some Alphabet Agencies (NRA & AAA for starters).
Roosevelt was angry that these seven judges were preventing him from passing laws.
Roosevelt threatened to ‘pack’ the court by adding six new judges who he knew would vote for New Deal measures (they would be liberal, like him).
VS.

7. A Punch cartoon, June 1935, attacking the decisions of the Supreme Court.
A cartoon from the Brooklyn Daily Eagle attacking Roosevelt’s attempts to ‘pack’ the Supreme Court.

9. Struggles and Victories
C. Labor Reforms
Unions Grow Stronger
National Labor Relations Act (Wagner Act)
protected workers that joined unions from being fired
guaranteed collective bargaining, which is when the union negotiates contracts on behalf of its workers (rather than individually).
Union membership grew from 3 to 9 million during the 30s.
Congress of Industrial Organizations (CIO) is started by John L. Lewis as a new union for entire industries.
Struggles and Victories
A new tactic used by labor unions was the sit-down strike. This is where they stop all machines and refuse to leave.
Fair Labor Standards Act - 40c/hr min wage, 44 hr work week, banned children under 16 from working in industry

11. FEDERAL MINIMUM HOURLY WAGE RATES UNDER THE FAIR LABOR STANDARDS ACT:
OCT. 24, 1938 $0.25
OCT. 24, 1939 $0.30
OCT. 24, 1945 $0.40
JAN. 25, 1950 $0.75
MAR. 1, 1956 $1.00
SEPT. 3, 1961 $1.15
SEPT. 3, 1963 $1.25
SEPT. 3, 1964 $1.15
SEPT. 3, 1965 $1.25
FEB. 1, 1967 $1.40
FEB. 1, 1968 $1.60
FEB. 1, 1969 $1.30
FEB. 1, 1970 $1.45
FEB. 1, 1971 $1.60
MAY 1, 1974 $2.00
JAN. 1, 1975 $2.10
JAN. 1, 1976 $2.30
JAN. 1, 1977 $2.30
JAN. 1, 1978 $2.65
JAN. 1, 1979 $2.90
JAN. 1, 1980 $3.10
JAN. 1, 1981 $3.35
APR. 1, 1990 $3.80
APR. 1, 1991 $4.25
OCT. 1, 1996 $4.75
SEPT.1, 1997 $5.15

12. D. Social Security Set up a pension system for the elderly.
This was paid for by the working class.
Set up an unemployment insurance system.
People who lost their jobs were paid small amounts until they found work again.
Gave states money to support dependent children and people with disabilities.
Critics of Social Security complained.
Liberals said that it didn’t include farmers, domestic servants (many who were women &/or minorities), or the self-employed.
Conservatives said that it was too intrusive in people’s lives, & saw it as another way for the government take $ from hard-working people.
Social Security is still around today, providing medical benefits & pensions to the elderly, as well as unemployment insurance to workers.

14. E. The New Deal Balance Sheet
Critics (Conservatives)
Government got too big, too powerful, & too intrusive (people lost freedoms).
Programs were too expensive (created deficit spending, which led to the national debt).
Harmed free-enterprise system & made unions too powerful.
People became lazy & overly-dependent on government to fix all their problems (welfare).
It failed to end the Depression (WWII did by creating jobs).
Supporters (Liberals)
Programs produced immediate benefits (jobs) & softened the worst effects of the Depression
Projects beautified the nation, inspired pride, and gave hope to those who had none before.
Government now regulates the economy, providing a safety net for banks & stock market.
Government now takes care of all citizens (welfare), not just big business & the wealthy.
It “saved” democracy. Other nations turned to dictators.