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Many businessmen and financiers did not support the economic measures of the New Deal. With the recession of 1937, many business leaders and politicians claimed that FDR's policies were a failure and the attempt to maintain prosperity during peacetime was not successful at all.

Many felt that the Depression was just part of the free enterprise (capitalistic) system correcting itself and the laws, such as supply and demand, of the free enterprise system would eventually heal the economy. The legislation which FDR favored, critics claimed, was an attempt to bring about socialism. The New Deal measures were giving the government more power over the states and the people and making the citizens more dependent upon the government for jobs, and businesses more dependent upon government regulation.

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Q: Critics charged that new deal policies favored socialism because the federal government?
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