Printed Page 664 Chapter Chronology

Resistance to Business Reform. New Deal programs rescued capitalism, but business leaders lambasted Roosevelt, even though their economic prospects improved more than those of most other Americans during the depression. Republicans and business leaders denounced New Deal efforts to regulate or reform what they considered their private enterprises.

By 1935, two major business organizations, the National Association of Manufacturers and the Chamber of Commerce, had become openly anti–New Deal. Their critiques were amplified by the American Liberty League, founded in 1934, which blamed the New Deal for betraying basic constitutional guarantees of freedom and individualism. To them, the Agricultural Adjustment Act was a "trend toward fascist control of agriculture," relief programs marked "the end of democracy," and the National Recovery Administration was a plunge into the "quicksand of visionary experimentation."

Economists who favored rational planning in the public interest and labor leaders who sought to influence wages and working conditions by organizing unions attacked the New Deal from the left. In their view, the National Recovery Administration stifled enterprise by permitting monopolistic practices. They pointed out that industrial trade associations twisted NRA codes to suit their aims, thwarted competition, and engaged in price gouging. Labor leaders especially resented the NRA's willingness to allow businesses to form company-controlled unions while blocking workers from organizing genuine grassroots unions to bargain for themselves.

The Supreme Court stepped into this cross fire of criticisms in May 1935 and declared that the NRA unconstitutionally conferred powers reserved to Congress on an administrative agency. The NRA codes soon lost the little authority they had. The failure of the NRA demonstrated the depth of many Americans' resistance to economic planning and the stubborn refusal of business leaders to yield to government regulations or reforms.