Eleanor Finch
The New Deal, a domestic program of the administration of U.S. President Franklin D. Roosevelt (FDR), was enacted between 1933 and 1939 to bring about immediate economic relief and reforms in industry, agriculture, finance, waterpower, labour, and housing. The New Deal vastly expanded the scope of the federal government's activities and powers, and as a result, many saw it as contradicting the U.S. Constitution. The New Deal was challenged in the Supreme Court, which initially struck down most of the new laws as outside the constitutional powers of Congress. In response, Roosevelt proposed the Judicial Procedures Reform Bill of 1937, which would have allowed him to appoint several new justices to the Supreme Court. This bill was introduced in the Senate, which ultimately passed a version that did not authorize the president to appoint new justices. Despite these challenges, the New Deal is seen as a significant expansion of federal power and a restoration of faith in American democracy.
| Characteristics | Values |
|---|---|
| Effect on Constitutional Powers | The New Deal expanded the federal government's powers, violating the separation of powers and federalism schemes of the Constitution. |
| Judicial Challenges | The Supreme Court initially struck down many New Deal laws as unconstitutional, but later cases affirmed their constitutionality. |
| Economic Regulation | The New Deal favored greater government intervention and regulation of the economy, departing from traditional American political philosophy. |
| Welfare and Social Programs | The New Deal established federal responsibility for the welfare of the economy and citizens, creating programs like Social Security, FDIC, and FHA. |
| Individual Liberties | FDR's "Second Bill of Rights" proposed positive rights, which some believed authorized the government to limit individual liberties in favor of government-guaranteed rights. |
| Political Corruption | The concentration of power in the executive branch led to a bureaucratic state with limited accountability, spawning political corruption. |
| Electoral Impact | The New Deal led to Roosevelt's unprecedented third and fourth terms as President, resulting in the 22nd Amendment limiting presidential terms to two. |
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What You'll Learn
The expansion of federal power
The New Deal, a domestic program of the administration of US President Franklin D. Roosevelt (FDR), was implemented between 1933 and 1939. It was enacted to bring about immediate economic relief and reforms in industry, agriculture, finance, waterpower, labour, and housing, which vastly expanded the scope of the federal government's activities.
The New Deal established federal responsibility for the welfare of the US economy and its people. This expansion of federal power was a notable shift from the traditional American political philosophy of laissez-faire, as the New Deal embraced the concept of a government-regulated economy. The New Deal aimed to balance conflicting economic interests and restore faith in American democracy at a time when many believed that the only choice was between communism and fascism.
The New Deal's expansion of federal power was achieved through the creation of numerous new agencies and programs, such as the Works Progress Administration (WPA), the Civilian Conservation Corps (CCC), the Federal Deposit Insurance Corporation (FDIC), and the Social Security Act. The establishment of these programs and agencies dramatically expanded the size and power of the federal bureaucracy.
The New Deal also led to the proposal of FDR's "Second Bill of Rights", which sought to transform moral duties from individual responsibilities into government-guaranteed rights. These rights were not adopted as constitutional amendments, but Congress attempted to secure many of them through legislation. This shift in responsibility from individuals to the government further expanded the federal government's role in the lives of American citizens.
In conclusion, the New Deal significantly expanded the federal government's power and responsibilities, marking a departure from traditional political philosophies and shaping the future of American democracy and governance.
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The Supreme Court's initial resistance
The New Deal, a domestic programme of US President Franklin D. Roosevelt (FDR), was enacted between 1933 and 1939. It aimed to bring about immediate economic relief and reforms in industry, agriculture, finance, waterpower, labour, and housing, significantly increasing the federal government's scope.
The New Deal's expansion of federal power was unprecedented and, in the eyes of many, unconstitutional. The Supreme Court initially struck down most of the new laws that made up the First New Deal as outside the constitutional powers of Congress. The Court argued that the New Deal violated the Constitution's enumerated power scheme, separation of powers scheme, and federalism scheme.
For example, in 1935, on what became known as Black Monday, the Supreme Court ruled unanimously against Roosevelt in three cases. In Humphrey's Executor v. United States, the Court found that Roosevelt had improperly dismissed a member of the Federal Trade Commission for ideological differences. In two other cases, the Supreme Court found that Congress had inappropriately delegated its regulatory power to the President.
In response to the Supreme Court's resistance, Roosevelt proposed the Judicial Procedures Reform Bill of 1937, which would have allowed him to appoint a new justice to the Supreme Court for every sitting justice over the age of 70. This proposal was widely seen as a power grab and an attempt to stack the Court with favourable justices.
Despite the initial resistance from the Supreme Court, the New Deal ultimately had a significant impact on the Constitution and the role of the federal government in the economy and society. Roosevelt's administration argued that the political rights in the 1791 Bill of Rights had "proven inadequate" for the challenges of the times, and proposed a second bill of rights to expand the government's powers.
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Roosevelt's Judicial Procedures Reform Bill
Franklin D. Roosevelt's New Deal (1933-1939) was a series of policies aimed at providing immediate economic relief and bringing about reforms to stabilize the economy. The New Deal vastly increased the scope of the federal government's activities, including the establishment of agencies like the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC).
The Judicial Procedures Reform Bill proposed that the President could appoint an additional justice for every sitting justice over 70, allowing Roosevelt to appoint up to six new justices. Roosevelt's plan faced opposition from his own party members and was defeated in the Senate. The bill was criticised as an "invasion of judicial power".
Following the defeat, Roosevelt adopted a new argument, framing the issue as a struggle between popular government and an unelected judicial oligarchy obstructing necessary reforms. However, an economic recession in 1937-1938 further damaged his stature, and only one new reform measure passed Congress before 1940. Despite the failure of the Judicial Procedures Reform Bill, Roosevelt was able to appoint eight justices to the Supreme Court during his presidency, reshaping the Court's composition.
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The Commerce Clause
In the context of the New Deal, the Commerce Clause played a significant role in shaping the legislation and policies implemented by President Franklin D. Roosevelt's administration during the Great Depression. The New Deal aimed to provide immediate economic relief and bring about reforms in various sectors, including industry, agriculture, finance, and labour, which expanded the scope of the federal government's activities.
One notable case related to the New Deal and the Commerce Clause is Schechter Poultry Corporation v. United States (1935). In this case, the Supreme Court unanimously invalidated regulations of the poultry industry as a violation of the nondelegation doctrine and an invalid use of Congress's power under the Commerce Clause. This decision rendered the National Industrial Recovery Act, a key component of the New Deal, unconstitutional.
Another case, Carter v. Carter Coal Company (1936), saw the Supreme Court strike down a New Deal regulation of the mining industry, arguing that mining was not considered "commerce" under the Commerce Clause. These decisions highlighted the ongoing debate about the interpretation and scope of the Commerce Clause.
In 1937, the Supreme Court case NLRB v. Jones & Laughlin Steel Corp marked a shift in the interpretation of the Commerce Clause. The Court recognised broader grounds for using the Commerce Clause to regulate state activity, stating that an activity could be considered commerce if it had a "substantial economic effect" on interstate commerce or if the "cumulative effect" of an act could impact such commerce. This new interpretation gave Congress more leeway to regulate economic activities, even if they did not directly involve interstate commerce.
The expansion of the Commerce Clause during the New Deal era led to a subsequent reaction in the form of the Rehnquist Court's "New Federalism" doctrine. This doctrine sought to rein in congressional powers and restore strength to the individual states, which had lost some autonomy during the New Deal. The Rehnquist Court's cases, such as Gonzales v. Raich, established limits on the commerce power to uphold federalism and individual liberties.
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The creation of new agencies
The New Deal established federal responsibility for the welfare of the US economy and the American people. The Federal Deposit Insurance Corporation (FDIC) in banking and Fannie Mae (FNMA) in mortgage lending are among the New Deal programs still in operation. Other programs include the Securities and Exchange Commission (SEC), the Federal Housing Administration (FHA), the Farm Credit Administration, and the Federal Communications Commission (FCC). The Soil Conservation Service remains as the Natural Resources Conservation Service. The most notable New Deal program still in effect is the national old-age pension system created by the Social Security Act (1935).
The New Deal also established new agencies to dispense emergency and short-term government aid and provide temporary jobs, including the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC). The WPA gave some 8.5 million people jobs, and its construction projects produced more than 650,000 miles of roads, 125,000 public buildings, 75,000 bridges, and 8,000 parks. The WPA also oversaw the Federal Art Project, Federal Writers' Project, and Federal Theatre Project.
The creation of these new agencies dramatically expanded the size and power of the federal bureaucracy. This concentration of power in the executive branch of the federal government led to a bureaucratic behemoth, with individual citizens having little voice or control and the government being largely unaccountable to the public. This administrative state has been criticized for producing staggering deficits and a culture of political corruption.
The New Deal's expansion of federal power was not without its constitutional challenges. The Supreme Court initially struck down most of the new laws that made up the First New Deal as outside the constitutional powers of Congress. Roosevelt responded with the Judicial Procedures Reform Bill of 1937, which would have allowed him to appoint new justices to the Supreme Court, thus potentially altering the Court's makeup and influencing future decisions on the constitutionality of New Deal programs.
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Frequently asked questions
The New Deal was seen as concentrating huge amounts of power within the executive branch of the federal government, which some argue violated the separation of powers outlined in the Constitution.
The New Deal expanded the Commerce Clause, increasing federal power to regulate commerce. This was challenged in court, with some arguing it was an unconstitutional expansion of power.
The New Deal's expansion of federal power led to a larger, more bureaucratic government, with some arguing that this reduced individual citizens' voices and control. FDR's proposed "second bill of rights" also suggested transforming moral duties from individual responsibilities into government-guaranteed rights.
