Twilight of the New Deal

Roosevelt’s shift to the left paid political dividends, and in 1936 the president won reelection by a landslide. His sweeping victory proved to be one of the rare critical elections that signified a fundamental political realignment. Democrats replaced Republicans as the majority party in the United States, overturning thirty-six years of Republican rule. While Roosevelt had won convincingly in 1932, not until 1936 did the president put together a stable coalition that could sustain Democratic dominance for many years to come.

In 1936 Roosevelt trounced Alfred M. Landon, the Republican governor of Kansas, and Democrats increased their congressional majorities by staggering margins. The vote broke down along class lines. Roosevelt won the votes of 80 percent of union members, 81 percent of unskilled workers, and 84 percent of people on relief, compared with only 42 percent of high-income voters. Millions of new voters came out to the polls, and most of them supported Roosevelt’s New Deal coalition of the poor, farmers, urban ethnic minorities, unionists, white southerners, and African Americans.

The euphoria of his triumph, however, proved short-lived. An overconfident Roosevelt soon reached beyond his electoral mandate and within two years found himself unable to extend the New Deal. In 1937 Roosevelt asked Congress to increase the size of the Supreme Court through a court-packing plan. He justified this as a matter of reform, claiming that the present nine-member Court could not handle its workload, much of it generated by the avalanche of New Deal legislation. Roosevelt attributed a good deal of the problem to the advanced age of six of the nine justices, who were over seventy years old. Under his proposal, the president would make one new appointment for each judge over the age of seventy who did not retire so long as the bench did not exceed fifteen members. In reality, Roosevelt schemed to “pack” the Court with supporters to prevent it from declaring New Deal legislation such as Social Security and the Wagner Act unconstitutional.

The plan backfired. Conservatives charged Roosevelt with seeking to destroy the separation of powers enshrined in the Constitution among the executive, legislative, and judicial branches. They portrayed the president as a “dictator,” which, although a distorted characterization, touched a nerve in those concerned with the rise of tyrants in Germany and Italy. In the end, the president failed to expand the Supreme Court, but he preserved his legislative accomplishments. In a series of rulings, the chastened Supreme Court approved Social Security, the Wagner Act, and other New Deal legislation. Nevertheless, the political fallout from the court-packing fight damaged the president and his plans for further legislative reform.

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See Documents 22.3 and 22.4 for two views on Roosevelt’s court-packing plan.

Roosevelt’s court-packing plan alienated many southern Democratic members of Congress who previously had sided with the president. Traditionally suspicious of the power of the federal government, southern lawmakers worried that Roosevelt was going too far toward centralizing power in Washington at the expense of states’ rights. Southern Democrats formed a coalition with conservative northern Republicans who shared their concerns about the expansion of federal power and excessive spending on social welfare programs. Their antipathy toward labor unions, especially in the wake of the sit-down strikes, further bound them together. Although they held a minority of seats in Congress, this conservative coalition could block unwanted legislation by using the filibuster in the Senate (unlimited debate that could be shut down only with a two-thirds vote). The coalition could not defeat Roosevelt’s Fair Labor Standards Act (1938), which established minimum wages at 40 cents an hour and maximum working hours at forty per week, but after 1938 these conservatives made sure that no other New Deal legislation passed.

Roosevelt also lost support because the recession of 1937 overlapped with the Supreme Court fight. When federal spending soared after passage of the WPA and other relief measures adopted in 1935, the president lost his economic nerve for deficit spending. He called for reduced spending, which increased unemployment and slowed economic recovery. At the same time, as the Social Security payroll tax took effect, it reduced the purchasing power of workers, thereby exacerbating the impact of reduced government spending. This “recession within the depression” further eroded congressional support for the New Deal.

The country was still deep in depression in 1939. Unemployment was at 17 percent, with more than 11 million people out of work. Most of those who were poor at the start of the Great Depression remained poor. Recovery came mainly to those who were temporarily impoverished as a result of the economic crisis. The distribution of wealth remained skewed toward the top. In 1933 the richest 5 percent of the population controlled 31 percent of disposable income; in 1939 the figure stood at 26 percent.

Against this backdrop of persistent difficult economic times, the president’s popularity began to fade. In the midterm elections of 1938, Roosevelt campaigned against Democratic conservatives in an attempt to reinvigorate his New Deal coalition. His efforts failed to purge the conservatives he hoped to unseat and upset many ordinary citizens who associated the tactic with that used by European dictators who had recently risen to power. As the decade came to a close, Roosevelt turned his attention away from the New Deal and increasingly toward a new war in Europe that, like World War I twenty-five years earlier, threatened to engulf the entire world.

Review & Relate

Why and how did the New Deal shift to the left in 1934 and 1935?

Despite the president’s landslide victory in 1936, why did the New Deal stall during Roosevelt’s second term in office?