Why did the New Deal draw criticism from conservatives and liberals ?

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Both conservatives and liberals criticized the New Deal. Conservatives believed the government was doing too much. Conservatives supported a laissez-faire government policy toward the economy. They viewed the New Deal programs as giving the government too much control. They felt the Securities Act and the Glass-Steagall Act gave the government too much control and regulation of the stock market and banking industry. They felt the government spent too much money on job creation programs. The Civilian Conservation Corps, Civil Works Administration, and the Public Works Administration were examples of programs that cost a lot of money. The conservatives didn’t like that the Wagner Act gave unions the right to exist. They also believed the National Industrial Recovery Act established too close of a relationship between workers, businesses, and the government. Conservatives were also concerned about the growing debt of our country.

Liberals felt President Roosevelt didn’t do enough. They wanted to see more programs to help the needy and to create jobs. This led to the passage of the Works Progress Administration. They believed there should be a pension for the elderly. This led to the development of the Social Security Program. They wanted workers’ rights to be protected. This, along with the National Industrial Recovery Act being declared unconstitutional, led to the passage of the Wagner Act. President Roosevelt was concerned he might lose support from the liberals in the election of 1936. This could have hurt his chances of getting reelected.

President Roosevelt was criticized by liberals for not doing enough and by conservatives for doing too much.

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It is interesting to examine certain programs started under the New Deal and realize that some of the feelings that the politicos of the time had about them have been realized.

One program about which conservatives were skeptical is the Social Security system which began in 1935 with the Economic Security Act of 1935. Taxes for this act were begun in 1937, and until 1983 it was a pay-as-you-go program.

The 2014 Social Security Trustees report showed a continuation of the current trend toward insolvency of both of its trust funds. As in the previous two years, the Trustees estimate that Social Security's combined retirement and disability trust funds will become exhausted in 2033, less than 20 years from now.

Another program that conservatives disapproved of was the Tennessee Valley Authority which they felt was socialistic in design. The TVA certainly has been a successful venture and has provided electrical power to many places that hitherto had had none. Moreover, it controls the Tennessee River flood waters and has improved navigation. So, in hindsight this was a program that produced jobs for many and has proved profitable. Still conservatives may have pointed to it as the beginning of government control over what should be left to private enterprise. 

Progressives were glad that FDR pledged to re-create the war social programs of the Wilson administration, a goal that was wildly popular at the time.

“I want to assure you,” Roosevelt's aide Harry Hopkins told an audience of New Deal activists in New York, “that we are not afraid of exploring anything within the law, and we have a lawyer who will declare anything you want to do legal.”

Some of them even called for FDR to become a benevolent "dictator," and do even more.


Additional Source:  http://www.marketwatch.com/story/social-security-is-in-crisis-2014-07-31

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Of course, liberals and conservatives had different reasons for criticizing the New Deal.

To conservatives, the New Deal was socialism.  It used taxpayer money to help people who were in need.  That is redistribution of income and it can be seen as a step towards socialism.  Conservatives saw it in this way.

To liberals, the New Deal did not do enough.   Many liberals wanted to see much more in the way of government spending.  For example, Dr. Francis Townsend wanted the government to give very generous pensions to all seniors on the condition that they spend all of their stipend every month, thus increasing demand in the economy.  Liberals, then, wanted more radical action than President Roosevelt was willing to take.

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