Chapter 26 Part Two: The New Deal and Opposition

Overview

Background: Populist from Louisiana, controlled Louisiana's politics.
Beliefs: Against oil companies, and banks; promised free textbooks for poor children.
Share Our Wealth Program:
- Confiscate fortunes over $5 million.
- 100% tax on incomes over $1 million.
- Redistribution to provide houses, cars, necessities, and $2,000-$3,000 annual income for the poor.
- Assassinated in 1935.
Impact: FDR feared his independent run might harm democratic votes.

Background: Catholic priest with popular radio shows on social/political issues.
Criticisms:
- Believed Roosevelt didn't go far enough.
- Supported inflated currency, attacked New Deal, and farm programs.
- Accused government of being sympathetic to communists and Jewish people.
Organization: National Union for Social Justice.

Proposals:
- Mandatory retirement at 60 to open jobs for younger people.
- $200 monthly pension for those 60+, must be spent within 30 days to stimulate economy.

National Labor Relations Act (Wagner Act):
- Rights to collectively bargain.
- Prohibited employer interference in unions.
- Outlawed company unions.
- Set up National Labor Relations Board to supervise union elections.
Social Security Act of 1935:
- Old age pensions starting at 65.
- Initially excluded agricultural workers, domestic help, and self-employed.
- Provided federal unemployment assistance.
Rural Electrification Administration (REA):
- Provided low-rate loans to extend electricity to rural farms.
- Increased rural farm electrification from 10% (1935) to 90% (1950).

Supreme Court Conflict:
- Roosevelt’s plan to add justices for overworked judges over 70 backfired.
- Plan was seen as a move to disrupt separation of powers; lost public trust.
1938 Political Backlash:
- Republicans gained seats in Congress.
- Anti-New Deal coalition formed.
- Difficulty in passing legislation post-court packing plan.

Unemployment Decrease: From 25% to 14% by 1937.
Budget Cuts: Reduced federal spending in the 1938 budget.
Fair Labor Standards Act (1938):
- Minimum wage: 25 cents/hour, increasing to 40 cents/hour in two years.
- Maximum workweek: 44 hours, reducing to 40 hours in two years.
- Banned oppressive child labor.

Economy:
- Failed to significantly reduce unemployment or increase middle-class movement.
- Large expansion of federal bureaucracy.
- Increased expectations of federal government intervention in crises.
Women and Minorities:
- More women appointed to federal positions, e.g., Frances Perkins as Secretary of Labor.
- African Americans switched to the Democratic Party, but Roosevelt did little for civil rights.
- Native Americans benefited from the Indian Reorganization Act of 1934.

Government Supervision:
- Increased federal control over stock exchange, agriculture, and labor relations.
Social Attitudes:
- Shift in public expectation for federal government to address national welfare issues.
Lobbyist Growth: Significant increase in lobbying activity.

Isolationism: Roosevelt forced to adopt isolationist policies as tensions rise in Europe.
Neutrality Acts: Restricted U.S. involvement, even refusing aid to invaded nations.
Undeclared War:
- Roosevelt’s policies indirectly supporting Allied efforts, e.g., convoy protections and seizing Greenland and Iceland.
- Incidents like the sinking of USS Reuben James escalated U.S. involvement.

Prelude to War: Roosevelt's efforts set the stage for eventual U.S. involvement in WWII.
Transition: Next chapter will focus on the build-up to and the outbreak of WWII.