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Opposition to the Second New Deal - Coggle Diagram
Opposition to the Second New Deal
Socialists, communists, strikes and sit ins
Communists looked to the USSR as a model economy
Impact on elections was maringal - Communist candidate Earl Browder received 79,000 votes in the 1936 election
Socialists and communists wanted government ownership so wealth could be shared equally
Gap between rich and poor was immense - Jan 1937 FDR said 1/3 of USA was poor
Norman Thomas, socialist, received 187,000 compared to the millions polled for Democrats and republicans
E.g Henry Ford, Rockefellers and Du Ponts had millions of $
Industrial unrest grew in the mid 1930s
This allowed economic power and wealth to be concentrated with a small number of people
United Automobile Wokers UNion organised strike - most leaders were socialists or communists
Capitalism allowed private ownership etc.
Dec 1936 new phenomenon affected US labour relations
Socialists wanted to destroy the economic system and have a fair system rather than FDR reforming it
In Michigan auto workers occupied the factory owned by Cleveland Fisher company - 1 month long sit in by worker prevented operation
1936 there were 2000 strikes involving 788,000 workers
1937 this rose to 4,470 involving 1.9m workers
Roosevelt recession
Work relief offered by WPA increased by 500%
Summer 1938 American economy was reverting back to the days before FDR was elected in 1932
Employment in manufacturing fell by 23% and GNP dropped by 13%
19 Oct 1937 another stock market crash occurred - 17m shares were offloaded
Federal Reserve Board feared a rise in inflation and limited the supply of money
1937 FDR ordered substantial cuts in federal government spending
Court packing plan (1937)
Plan provoked massive criticism in the media and Congress
FDR suffered a major decline
Change would've given FDR immense power
Body rejected his plans by 70 to 20 despite Democrats having majority in Senate
Wanted to increase number of justices from 9 to 15
US SC allowed progressive legislation to become law
Would've allowed FDR to appoint new justices - transforming the political balance of the SC
Upheld minimum wage act from Washing State in March 1937
Aim was to force all Supreme Court justices to retire at 70 years old
12 April 1937 they upheld Wagner Act
Feb 1937 he submitted a bill known as the Judicial Procedures Reform bill
Justice William van Devanter retired allowing FDR to appoint his replacement
After 1937 the SC no longer acted as an opponent to the New Deal
FDR lost a considerable amount of support within Congress