
During the 1930s, President Franklin D. Roosevelt's New Deal faced several constitutional challenges and scrutiny from the Supreme Court. The New Deal, implemented in response to the Great Depression, aimed to provide economic relief through various programs and reforms. However, the expansion of federal power and the delegation of authority to the President raised constitutional concerns. While the New Deal faced setbacks and criticism, it ultimately survived constitutional challenges and set a precedent for the federal government's role in economic and social affairs. The debate around the New Deal's constitutionality continues to be a subject of discussion and interpretation.
| Characteristics | Values |
|---|---|
| Date of implementation | 1933-1939 |
| President | Franklin D. Roosevelt |
| Aim | To provide immediate economic relief and bring about reforms to stabilize the economy |
| Achievements | Built labor unions, upgraded national infrastructure, saved capitalism, provided jobs, improved business ethics, established minimum wages and maximum hours, reduced child labor and sweatshop labor, provided relief for the unemployed |
| Criticism | Did not substantially alter the distribution of power within American capitalism, vastly increased federal debt, slowed down recovery by supporting restrictionism and price raising |
| Constitutional challenges | Scrutiny and constitutional challenges from the Supreme Court, criticism from Justice Scalia that it gave the President too much authority |
| Landmark cases | Home Building & Loan Association v. Blaisdell, Nebbia v. New York, Railroad Retirement Board v. Alton Railroad Co., United States v. Butler |
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What You'll Learn

Roosevelt's administration and the Supreme Court
During the 1930s, Roosevelt's New Deal was subjected to much scrutiny and several constitutional challenges. Roosevelt was initially cautious of the U.S. Supreme Court, and his administration was slow to bring constitutional challenges of New Deal legislation before the Court. However, the Roosevelt administration and the Supreme Court had several confrontations.
The Roosevelt administration closely monitored the challenge to the 1934 Railroad Retirement Act, Railroad Retirement Board v. Alton Railroad Co. The railroad pension was designed to encourage older rail workers to retire, creating jobs for younger railroaders. However, the act was passed by Congress on the grounds that it would increase safety on the railways. Several challenges were filed in the Supreme Court of the District of Columbia, and injunctions were issued, arguing that the law was an unconstitutional regulation of an activity unrelated to interstate commerce.
On May 27, 1935, Black Monday, the Roosevelt administration suffered a significant setback. The Supreme Court, led by Chief Justice Charles Evans Hughes, ruled against Roosevelt in three cases, unanimously. The cases laid out the criteria for respecting due process and property rights and the appropriate delegation of legislative powers to the President. This setback led to the revision of the Agricultural Adjustment Act (AAA), which aimed to provide relief to farmers by paying them to reduce production and increase prices.
The New Deal faced further challenges in the Supreme Court, with Associate Justice Owen Roberts initially appearing to side against the New Deal. However, in 1937, a series of Supreme Court cases affirmed the constitutionality of the New Deal laws. Justices Hugo Black, William O. Douglas, and Felix Frankfurter, who supported Roosevelt's policies, formed a new majority upholding economic regulation. These cases marked a turning point, with the New Deal ultimately surviving constitutional scrutiny.
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The New Deal and constitutional challenges
Franklin D. Roosevelt's New Deal (1933–39) was a response to the Great Depression, which saw banks in crisis and nearly a quarter of the US workforce unemployed. The New Deal aimed to provide immediate economic relief and bring about reforms to stabilise the economy.
The New Deal was subjected to scrutiny and faced many constitutional challenges in the 1930s. Roosevelt was cautious of the US Supreme Court early in his first term, and his administration was slow to bring constitutional challenges of New Deal legislation before the Court.
One of the first setbacks for the Roosevelt administration came in the railroad pension case, Railroad Retirement Board v. Alton Railroad Co. The Supreme Court of the District of Columbia issued injunctions on the grounds that the law was an unconstitutional regulation of an activity not connected to interstate commerce.
On Black Monday, May 27, 1935, the Supreme Court ruled unanimously against Roosevelt in three cases, including United States v. Butler, which tested the Agricultural Adjustment Act (AAA). The AAA created an agricultural regulatory program that paid farmers to reduce their acreage and production, thereby reducing surpluses and raising prices. However, the Court's restrictive view of the Commerce Clause in the Schechter decision caused concern for supporters of the New Deal.
On White Monday, March 29, 1937, the Court upheld New Deal legislation in three decisions, two of which were unanimous. Starting in 1937, a series of Supreme Court cases affirmed the constitutionality of the New Deal laws. Three New Deal justices who favoured Roosevelt's policies—Hugo Black, William O. Douglas, and Felix Frankfurter—formed a new majority that upheld economic regulation under the New Deal.
While the New Deal did not substantially alter the distribution of power within American capitalism, it preserved democracy in the United States during a period of uncertainty and crises when democracy failed in many other countries. It also set a precedent for the federal government to play a key role in the nation's economic and social affairs.
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The New Deal's impact on the Commerce Clause
The Commerce Clause, referring to Article 1, Section 8, Clause 3 of the U.S. Constitution, grants Congress the power to regulate commerce with foreign nations, among states, and with Indian tribes. The interpretation of the Commerce Clause has been a source of significant controversy regarding the balance of power between the federal government and the states.
The New Deal, implemented by President Franklin D. Roosevelt, aimed to provide economic relief and stabilize the economy during the Great Depression. It included the Agricultural Adjustment Administration (AAA), which paid farmers to reduce production and raise prices, and the National Recovery Administration (NRA), which established minimum wages and maximum hours, among other measures.
Another case, Carter v. Carter Coal Company in 1936, struck down a key element of the New Deal's regulation of the mining industry, as mining was not considered "commerce." These decisions prompted Roosevelt to propose the Judicial Procedures Reform Bill of 1937 to allow the President to appoint additional Justices.
However, starting in 1937 with NLRB v. Jones & Laughlin Steel Corp, the Supreme Court began to interpret the Commerce Clause more broadly. It held that activities with a "substantial economic effect" on interstate commerce could be regulated by Congress. This new interpretation upheld several New Deal programs and expanded the federal government's power.
The impact of the New Deal on the Commerce Clause was thus complex. While early New Deal programs faced constitutional challenges, the Supreme Court's shift to a broader interpretation of the clause in 1937 solidified the federal government's power to regulate interstate commerce and upheld many New Deal initiatives.
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The role of Associate Justice Owen Roberts
Associate Justice Owen Josephus Roberts played a significant role in the constitutional crisis surrounding President Franklin D. Roosevelt's New Deal. The New Deal was a series of economic programmes implemented by Roosevelt between 1933 and 1939 to provide relief during the Great Depression.
Roberts, a graduate of the University of Pennsylvania Law School, was appointed to the Supreme Court by President Herbert Hoover in 1930. He was a swing vote between the conservative "Four Horsemen" and the liberal "Three Musketeers". His vote often decided whether Roosevelt's New Deal legislation would be upheld.
Initially, Roberts voted with the conservative bloc, invalidating several New Deal policies. In 1936, in the case of United States v. Butler, Roberts sided with the conservatives, striking down the Agricultural Adjustment Act as beyond Congress's powers.
However, in 1937, Roberts changed his stance in the case of West Coast Hotel Co. v. Parrish. In this case, the Court upheld Washington state's minimum wage law, signalling that the rest of the New Deal legislation would be deemed constitutional. This move, known as "The switch in time that saved nine", is believed to have been politically motivated to undermine Roosevelt's court-reorganisation plan.
Roberts' vote in the Parrish case was not an isolated incident. He had previously argued for a broad interpretation of government power in the 1934 case of Nebbia v. New York. Legal scholars suggest that his vote in the Parrish case was not a complete reversal but a continuation of his earlier stance.
In conclusion, Associate Justice Owen Roberts played a pivotal role in the constitutional crisis surrounding the New Deal. His swing vote on the Supreme Court initially invalidated several New Deal policies. However, his switch in the Parrish case marked a turning point, upholding New Deal legislation and shaping the judicial outlook of the Court.
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The New Deal's legacy and interpretation
The legacy of President Franklin D. Roosevelt's New Deal is a topic that has been widely discussed and interpreted by historians, economists and political analysts. The New Deal was implemented during the Great Depression, a period of severe economic crisis in the United States. Roosevelt's administration aimed to provide immediate economic relief and stabilise the economy through a range of programmes and reforms.
One interpretation of the New Deal's legacy is that it played a crucial role in restoring hope and self-respect to millions of Americans who were struggling during the Great Depression. It is argued that the New Deal saved capitalism and prevented the nationalisation of banks and railroads. Additionally, the New Deal is credited with building labour unions and upgrading national infrastructure. The National Recovery Administration (NRA), for example, established codes to eliminate unfair practices, set minimum wages and maximum hours, and guaranteed the right to collective bargaining.
However, some historians argue that the New Deal did not substantially alter the distribution of power within American capitalism. While it prevented further economic decline, it may have hindered recovery by supporting restrictionism and price-raising. The New Deal also vastly increased the federal debt.
Another interpretation of the New Deal's legacy is that it set a precedent for the federal government to play an active role in the economic and social affairs of the nation. This interpretation suggests that the New Deal marked a shift towards a more interventionist government, which continued to influence policy-making in subsequent decades.
The New Deal was also significant in that it faced several constitutional challenges. There were debates about whether the New Deal's expansion of the Commerce Clause was consistent with the original Constitution. Some argued that it gave the President too much authority to implement regulations that were not grounded in broader governing principles. These constitutional debates continue to shape discussions about the role of government and the interpretation of the Constitution.
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Frequently asked questions
The New Deal was a series of programs implemented by US President Franklin D. Roosevelt between 1933 and 1939 to provide economic relief and stabilise the economy during the Great Depression.
The New Deal was subjected to much scrutiny and several constitutional challenges. Roosevelt's administration was cautious of the US Supreme Court and slow to bring constitutional challenges of the New Deal before the Court. However, the Supreme Court eventually ruled against Roosevelt in several cases, including one that deemed the Agricultural Adjustment Act (AAA) unconstitutional.
The AAA was a program that provided economic relief to farmers by paying them to reduce production, thus reducing surpluses and raising prices for agricultural products.
Other programs included the Public Works Administration (PWA), which hired the unemployed to build infrastructure; the Civilian Conservation Corps (CCC), which employed young men in reforestation and flood control work; and the National Recovery Administration (NRA), which established codes to eliminate unfair practices, set minimum wages and maximum hours, and guarantee collective bargaining rights.
While the New Deal provided immediate relief and halted the economic collapse, it is debated whether it ended the Great Depression. Some economists argue that the federal deficit spending associated with the New Deal brought full employment, while others attribute the eventual recovery to banking and monetary reforms.

























