The Second New Deal & FDR's Second Term
Copyright © 2005-6, Henry J. Sage

“I see one-third of a nation ill-housed, ill-clad, ill-nourished.”—FDR 2nd Inaugural Address

Once the euphoria that had accompanied Roosevelt's first year in office had been tempered by continuing economic troubles in the nation, Roosevelt's programs began to come under attack from both ends of the political spectrum: “Thunder on the right” and ”Thunder on the left.” Although the focus of the opposition to Roosevelt's programs came from Republicans, who were heavily outnumbered in Congress, there were plenty of conservative Southern senators and congressmen who were unhappy with various aspects of the New Deal.  Critics on both sides argued that Roosevelt, if not actually a Communist, was dragging the country in the direction of Socialism, or even worse, that he was actually flirting with Communism. While such charges could be written as to political attacks, FDR was nevertheless obliged to defend himself against such charges by declaring in his 1936 reelection campaign that people should “put that red herring to rest.” 

FDR's critics on the left argued that not only was he not moving in the direction of Communism, he was actually protecting capitalism by programs that did not go nearly far enough to curb what they saw as the excesses of big business. Most notable among FDR's critics on the left was the most colorful demagogue, populist Senator Huey Long, the former governor of Louisiana, who was known as the “Kingfish” for his motto, “Every Man a King!”

Rising from any impoverished background, Long was a self-made politician who quickly became a legend in his own time. Struggling against conservative Louisiana Democrats, Long was willing to invest heavily in programs for the state.  He oversaw construction of thousands of miles of roads and provided free books for school children.  He also helped convert Louisiana State University into a fine institution and added a medical school to its programs.  He also strengthened the economic foundations of the city of New Orleans by providing for additional infrastructure.

Although he had supported Governor Roosevelt's bid for the presidency in 1932, he became disenchanted when he felt that Roosevelt was not moving far enough to the left.   He began to see FDR as a front man for capitalists and started attacking him.  Long came up with a plan called “Share Our Wealth”; in essence the idea was to tax estates and incomes in excess of $1 million up to a rate of 100% and to guarantee to every American a home, an automobile, and an education through college.   Long might have given Roosevelt serious trouble in the election of 1936, though it's unlikely he could ever have won, but he was assassinated in 1935 by a disgruntled physician.

Huey Long was portrayed as the character Willie Stark in Robert Penn Warren's classic novel, All the King's Men. A film based on the novel won the Academy award for best picture in 1949, and a recent version (2006) stars Sean Penn as Long.

Also on the left was the Communist Party led by Earl Browder, whose convention at Madison Square Garden in New York City in 1936 attracted a large crowd.   Browder claimed that charges that Roosevelt's programs were Communist were ridiculous and merely a cover-up for capitalism. (The appeal of Communism was blunted by the fact that many who might have been sympathetic were disturbed by the belief that international Communism was controlled from Moscow, which was at least partly correct.)

Father Charles A. Coughlin, a Catholic Priest, was one who initially supported Roosevelt but then turned violently against him. Father Coughlin's popular radio program attracted millions of listeners, and he soon began to attack the new deal as a Communist conspiracy.   Only his extremism finally cost him public support.

Another vigorous anti-Roosevelt activist was Dr. Frances Townsend, who created a plan calling for all persons over 60 years of age to get $200 per month if they promised not to work; they would have to spend it within 30 days.   Financing would come from a 2% sales tax.   The Townsend Clubs eventually reached a membership of 2 million Americans, and in 1936 his followers aligned themselves with the Union Party.

Also on the right was an organization known as the Liberty League, of which the former new York Governor Al Smith, once a loyal Roosevelt supporter, became an outspoken leader.  The Liberty League claimed that Roosevelt was leading the country towards communism; Smith argued that there was room in America for only one national anthem, the “Star-Spangled Banner,” not “The Internationale,” a Communist hymn.

Yet another assault came from the United States Supreme Court, which ruled that several of Roosevelt's New Deal programs were unconstitutional. This most serious challenge to FDR's programs angered the president and led him into his greatest political blunder, which followed the election of 1936.

See FDR and the Supreme Court.

The Second New Deal

In response to the various attacks by Long and others, Roosevelt launched what he called the Second New Deal in June, 1935. It included the following:

• The Wagner National Labor Relations Act, which guaranteed that labor organizations could bargain collectively
• The Social Security Act, which provided old age pensions and unemployment relief
• The 1935 Banking Act, which strengthened the Federal Reserve System
• The Revenue Act of 1935, known as the “soak the rich tax,” which placed very high tax rates (75%) on top incomes.

The Social Security Act, probably the high point of Roosevelt's New Deal, included a pension fund for people over the age of 65. Although the first payments ranged only from $10-$40 per month, they provided minimal relief for people on the edge of starvation. As Roosevelt stated at the time, old-age Social Security was never meant to be a retirement program of its own; it was designed merely to supplement income which people had from other sources. Social Security also established a federal and state unemployment program which was financed by payroll taxes on businesses. The act also provided additional relief for dependent children, the visually handicapped and other such dependent persons.

A measure of the persistence of the New Deal’s legacy is the fact that Social Security is still central to the ongoing political debate in the country.  Most Americans have come to see Social Security as an expectation, and fears that the funds available to provide Social Security payments will be insufficient have already generated modifications to the system, as the age when full payments begin has been gradually raised.

Another important component of the second new deal was the Works Progress Administration, the WPA, which over the course of its lifetime built hundreds of buildings bridges, roads, airports, schools and ohtter public buildings such as post offices. By the time it ended during the Second World War, over 9 million people had been employed by the WPA. Cornerstones of many buildings still in use bear the WPA imprint.

Still the Depression lingered on, and the social dislocations resulting from extended periods of unemployment that kept thousands in abject poverty took a grave toll on substantial portions of the population, especially in areas such as Appalachia and in manufacturing regions where heavy industries had been brought almost to a standstill. Marriages were delayed, birthrates plummeted, and a federal bureau determined that approximately 20% of all American children were underfed. Armies of men, women and even children rode the rails in search of employment or any opportunity to improve their poverty-stricken lives.

Despite the critics on the right, left, and even in the center of the political spectrum, Roosevelt won a second term by a huge landslide. His opponent, Governor Alf Landon of Kansas, won only two states and eight electoral votes; FDR had 523. As mentioned above, Huey Long, who might have caused problems for Roosevelt in that election year, was assassinated in the state Capitol in Baton Rouge in 1935.

In the Congress elected in 1936 Democrats held 77 of 96 seats in the Senate, and had a majority of 328 to 107 in the House. The Depression and the New Deal continued into 1937.

Roosevelt's Second Inaugural Address

The End of the New Deal

History 122 Part 3 | Updated October 12, 2006