New Deal:  V

Although the First Hundred Days were over, the president and Congress had not finished acting to address problems in society and the economy. 

National Housing Act

In June 1934, Congress passed the National Housing Act, which authorized the formation of the Federal Housing Administration (FHA).  FHA succeeded HOLC, providing a permanent agency to provide low-interest housing loans for Americans.

Securities and Exchange Act

Nearly a year after Congress signed off on the “first” New Deal, it addressed a reform measure aimed at preventing a future crash of the Stock Exchange.  On June 6, 1934, Congress created a Securities and Exchange Commission (SEC) with powers to certify issues of and trading in stocks.  The act creating the SEC listed those practices that would, in future, be illegal, such as insider trading and misrepresenting the value of stocks.

Politics of the New Deal

The Role of Congress

While Roosevelt provided the inspiration for the New Deal, and Brain Trusters offered ideas, Democratic congressional leaders proved vital to the conception, passage, and implementation of the New Deal.  Their input insured they would support many of the programs they helped create.

Challenge From the Left

For some, Roosevelt’s New Deal did not go far enough.  Louisiana Governor Huey P. Long, who entered the Senate in 1934, proposed an alternative plan called “Share Our Wealth.”  Long proposed, among other things, setting a maximum income of $100,000 per year. While FDR had many critics, Long was perhaps the most dangerous.  He developed a wide following through his use of radio, and as a fellow Democrat, he could undermine Roosevelt’s chances for renomination in 1936.

Another challenger from the left was the “radio priest,” Father Charles Coughlin.  Founder of the “Union for Social Justice,” Coughlin condemned Roosevelt as being too close to Big Business.  However, Coughlin discredited himself by indulging in anti-Semitic and pro-fascist statements.

Roosevelt Responds

Facing pressure from the left, Roosevelt decided he needed to adopt a more “radical” approach if he wanted to be re-elected in 1936.  Thus, he proposed a host of new legislation in the spring of 1935 that came to be known collectively as the “Second New Deal.”