Right Wing Opposition to the New Deal

The reason for Supreme Court to oppose

It was run by 9 judges, most of (6 of) the judges had been selected by republicans and could serve for life. they did not share Roosevelt’s political views.

They believed that the Supreme Court had a duty to defend the Constitution and protect the rights of individual states.

Challenge from Schechter Poultry Corp.

• ​Details:​​ A company that had signed NRA codes broke rules on wages and poultry condition.

• ​Ruling (1935):​​ The Supreme Court agreed the federal government had no power over trade within a state and that Congress gave too much law-making power to the NRA.

• ​Result:​​ The ​NRA was effectively closed down.

AAA Case, 1936

• Details:​​ A cotton processor challenged the AAA's power to tax his business.

• ​Ruling:​​ The Court found in the company's favor, stating agriculture was a state matter, not a federal one.

• ​Impact:​​ These rulings threatened the legal basis of ​all Alphabet Agencies​ and were a major blow to the New Deal's expansion of federal power.

Roosevelt's Response "Court-Packing" Plan, 1937

• Proposal:​​ Asked Congress for power to appoint a new judge for every sitting justice over age 70. With the average age at ​71, this would let him appoint ​6 new judges​ immediately.

• ​Reaction:​​ The plan was fiercely opposed. The Court was furious, and Congress saw it as dictatorial. The plan was ​defeated.

• ​Outcome:​​ The Court "got the message." Its decisions began reflecting public mood, challenges to the New Deal stopped, and Roosevelt later appointed sympathetic judges as retirements occurred.

Reason for the Republican Party to oppose

1. He was a member of the Democratic party

2. Roosevelt made the federal government ​too powerful​ and they supported the Supreme Court's anti-New Deal decisions.

3. ​Spending & Taxes:​​ They opposed the ​billions​ spent on the New Deal, the use of borrowed money, and tax increases like the ​Revenue Act of 1935.

1936 Election

Candidate ​Alfred Landon​ (from the Republican party) campaigned to return power to states, aid farmers, and end New Deal regulations. He was defeated.

Successful Opposition

The ​1938 Congressional elections​ gave Republicans many more seats. They formed a ​coalition with conservative Southern Democrats.

• This coalition had enough power to:

  • ​Cut spending​ on relief programmes (WPA numbers fell quickly).

  • ​Investigate Alphabet Agencies​ (e.g., accused WPA/NLRB officials of being communists).

  • ​Block new measures​ (e.g., rejected a housing plan and more public works in ​1939).

• ​Result:​​ The New Deal effectively stopped. The ​Fair Labor Standards Act (1938)​​ was its last major piece of legislation.

Business opposition

• Initial Position:​​ Businesses initially ​benefited​ as the New Deal calmed the economic crisis.

• ​Reasons for Turning Against the New Deal:​​

  1. ​Disliked Regulation:​​ NRA codes and laws (minimum wage, hours) went against ​laissez-faire​ beliefs.

  2. ​Pro-Union Stance:​​ The NIRA and ​Wagner Act​ empowered unions to challenge managers.

  3. ​Opposed Spending & Taxes:​​ Objected to high federal taxes funding programmes like WPA and Social Security. Wanted low taxes so people could spend more to buy goods

American Liberty League

• Founded:​​ ​1934​ by conservatives from both parties (e.g., Democrat ​Al Smith, Republican ​James Wadsworth) and business leaders (e.g., the ​du Pont brothers).

• ​Argument:​​ The New Deal was ​anti-business, threatened states' rights, and relief should be left to charity.

• ​Actions:​​ Spent over ​​$1 million​ on a national organisation for leaflets, speeches, and dinners.

Support to the American Liberty League by business groups

• Public Campaigns:​​ The ​U.S. Chamber of Commerce (a lobbying group)​ publicly criticised Second New Deal laws like the Wagner Act (1935).

• ​Sponsored Legal Challenges:​​ The ​Iron and Steel Institute​ paid for the ​Schechter brothers' appeal​ against the NRA.

​Limited Success of the American Liberty League

• The Liberty League struggled to recruit (only ​~150,000​ members).

• It was ​unpopular; Republicans told it to stay out of the ​1936​ election.

• The ​Supreme Court's changed attitude after 1937​ made legal challenges less effective.

• The League closed its offices in ​1940​ with little public notice.