The New Deal: Constitutional Overreach?

how did the new deal violate the constitution

Franklin D. Roosevelt's New Deal (1933-1939) was a domestic program aimed at providing immediate economic relief and bringing about reforms in industry, agriculture, finance, waterpower, labour, and housing. The New Deal vastly expanded the scope of the federal government's activities and powers. The New Deal was subjected to much scrutiny and several constitutional challenges. The U.S. Supreme Court ruled that certain provisions of the New Deal exceeded Congress's power to regulate interstate commerce and invaded the states' rights to regulate manufacturing. The Supreme Court also found that some New Deal laws violated the Tenth Amendment rights of state sovereignty and the Due Process Clause of the Fifth Amendment.

Characteristics Values
Violation of the Due Process Clause of the Fifth Amendment Awarding pension computation credit to former rail workers
Violation of Tenth Amendment rights Violation of state sovereignty
Violation of states' rights Regulating manufacturing
Violation of the Constitution Taking of private property
Violation of the Constitution Imposing costs of establishing relations with the Soviet Union on private citizens
Violation of the principle of separation of powers Granting too much unchecked power to the Executive
Violation of the principle of laissez-faire Government-regulated economy

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Violation of the Fifth Amendment's Due Process Clause

The New Deal was an amalgam of dozens of programs and agencies created by the Roosevelt Administration and Congress. Some of these programs were challenged on the grounds that they violated the US Constitution.

One such challenge was that the New Deal violated the Fifth Amendment's Due Process Clause. This clause acts as a safeguard from the arbitrary denial of life, liberty, or property by the government outside the sanction of law.

The National Industrial Recovery Act (NIRA), a major cornerstone of the New Deal, was struck down by a vote in the courts. The Supreme Court held that the NIRA was an unconstitutional delegation of legislative power to the executive, seeking to regulate businesses not engaged in interstate commerce.

In the case of A.L.A. Schechter Poultry Corp. v. United States, the Schechter brothers were charged with criminal violations of the Live Poultry Code, which regulated the New York poultry market. They appealed on the grounds that certain sections violated the Fifth Amendment's Due Process Clause. The Supreme Court unanimously ruled in their favor, finding that Congress had delegated too much lawmaking authority to the President without any clear guidelines or standards.

Another example is the Frazier-Lemke Emergency Farm Mortgage Act, which was designed to prevent debt-ridden farmers from losing their land. This act was also struck down as unconstitutional, with Justice Louis Brandeis finding that it violated the Fifth Amendment's Takings Clause. The act allowed debtors to remain on mortgaged property for up to five years after declaring bankruptcy, denying creditors the opportunity to immediately foreclose.

Additionally, in Humphrey's Executor v. United States, a provision of the act awarded pension computation credit to former rail workers was characterized by Associate Justice Roberts as "a naked appropriation of private property." He argued that it took belongings "of one and bestowing it upon another," violating the Due Process Clause of the Fifth Amendment.

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Overturning of state sovereignty

The New Deal, enacted by US President Franklin D. Roosevelt, was a series of programs and reforms aimed at providing immediate economic relief and stabilising the economy during the Great Depression. While the New Deal addressed pressing economic issues, some aspects of it were challenged as unconstitutional, particularly concerning state sovereignty.

One of the key aspects of the New Deal that challenged state sovereignty was the expansion of federal power. The New Deal established federal responsibility for the welfare of the US economy and the American people, marking a significant shift in the balance of power between the federal government and the states. Roosevelt himself acknowledged the delicate balance between executive and legislative authority.

The Agricultural Adjustment Act (AAA), a central component of the New Deal, created an agricultural regulatory program that used taxes to pay farmers to reduce their production and acreage, thereby increasing prices. This program was challenged in the case of United States v. Butler, with opponents arguing that it attempted to regulate activity not connected to interstate commerce and violated the powers reserved to the states. The Supreme Court ruled the AAA unconstitutional, invalidating it as a violation of state sovereignty.

Another example of the New Deal's encroachment on state sovereignty was the National Industrial Recovery Act (NIRA). Under the NIRA, Roosevelt promulgated the Live Poultry Code to regulate the New York poultry market, which was challenged by the Schechter brothers as an unconstitutional delegation of legislative power to the executive. The Supreme Court unanimously held that Congress had delegated too much law-making authority to the President without clear guidelines, again asserting the importance of preserving state sovereignty and limiting federal power.

The expansion of federal power under the New Deal led to concerns about the integrity and functionality of state governments. The Court acknowledged that while certain legislation might fall within the scope of the Commerce Clause, there are inherent attributes of state sovereignty that cannot be impaired by Congress. This recognition highlighted the delicate balance between federal and state powers and the need to respect the position of states in the constitutional system.

In conclusion, while the New Deal addressed critical economic challenges, it also faced legal challenges for encroaching on state sovereignty. The Supreme Court played a pivotal role in interpreting and upholding the Constitution, striking down provisions that exceeded federal authority and violated the principles of state sovereignty. These cases set important precedents for future interpretations of state sovereignty and the scope of federal power.

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Conflict with the notion of graduated income tax

The New Deal was a domestic programme of US President Franklin D. Roosevelt's (FDR) administration between 1933 and 1939. It was designed to bring about immediate economic relief and reforms in industry, agriculture, finance, waterpower, labour, and housing, vastly increasing the scope of the federal government's activities.

The New Deal established federal responsibility for the welfare of the US economy and the American people. It aimed to 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 the Commerce Clause, which was driven by liberal ends, had long preceded the deal itself. However, it is arguable that the principles of the Constitution are at odds with the notion of a graduated income tax. This is because the original Constitution provided grounds for a central government that could undertake internal improvements, offer land grants to launch universities, and pass the Homestead Acts. Against this sweep of measures, a scheme of social insurance does not seem like a long stretch. However, whether those schemes would encompass policies of redistribution or a centralisation of administration are different questions.

The New Deal faced several constitutional challenges and scrutiny. One of the key constitutional challenges to the New Deal was the National Industrial Recovery Act (NIRA), a cornerstone of the New Deal, which was struck down by a vote in the courts. The Supreme Court ruled that the NIRA exceeded Congress's power to regulate interstate commerce and invaded the states' rights to regulate manufacturing. The court also ruled that the NIRA gave too much unchecked power to the Executive and violated the due process clause of the Fifth Amendment.

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Violation of private citizens' rights

The New Deal, proposed by Franklin Delano Roosevelt during the 1932 presidential campaign, aimed to revitalise the country's struggling business and agricultural sectors. Roosevelt's "second bill of rights" included positive rights, such as the "right" to a well-paying job, a "decent home", and a "good education". These differed from the natural and inalienable rights in the U.S. Bill of Rights, which are mostly negative rights that prevent interference by others or the government in individual freedoms.

The New Deal's programs included the National Recovery Administration (NRA), which established codes to eliminate unfair practices, set minimum wages and maximum hours, and guaranteed the right to collective bargaining. Other programs were the Tennessee Valley Authority (TVA), which provided cheap electricity to seven states, and the Home Owners' Refinancing Act, which offered mortgage relief to the unemployed.

However, the New Deal also faced criticism and constitutional challenges. Some argued that it violated the rights of private citizens, particularly in the famous "hot oil" case (Panama Refining Co. v. Ryan). In this case, Congress gave the President the authority to prohibit the interstate commerce of petroleum, which was seen as an unconstitutional delegation of legislative power to the executive. The National Industrial Recovery Act (NIRA), part of the New Deal, was also challenged as it sought to regulate businesses not engaged in interstate commerce and was seen as a violation of the Fifth Amendment Due Process Clause.

Another example of the New Deal's potential violation of private citizens' rights was the 1934 Municipal Bankruptcy Act, which was ruled unconstitutional by the Supreme Court in 1936. The law allowed municipalities to obtain voluntary readjustment of their debts through federal court proceedings, but it was found to violate the Tenth Amendment rights of state sovereignty.

The New Deal's expansion of federal power and Roosevelt's proposal for the Judicial Procedures Reform Bill of 1937, which would have allowed the President to appoint additional justices to the Supreme Court, also caused concern. Roosevelt's administration argued that national laws were necessary to protect against economic ruin. However, critics like Jeremy Rabkin argued that while the government might have a stake in establishing relations, the costs should not have been imposed on private citizens.

The New Deal's impact on private citizens' rights remains a subject of debate, with some arguing that it violated the Constitution, while others defend Roosevelt's actions as necessary to restore faith in American democracy during a time of economic crisis.

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Excessive expansion of federal government

The New Deal, a series of economic programmes implemented by US President Franklin D. Roosevelt in response to the Great Depression, was controversial and faced significant opposition, with critics arguing that it violated the US Constitution. One of the key areas of concern was the excessive expansion of the federal government's power and reach.

The New Deal brought about a significant shift in the role of the federal government

Frequently asked questions

The New Deal was a domestic program of US President Franklin D. Roosevelt's administration that aimed to bring about immediate economic relief and industry, agriculture, finance, waterpower, labour, and housing reforms. While the New Deal was not itself unconstitutional, several key programs were found to be unconstitutional.

The first case to be ruled unconstitutional was the Frazier-Lemke Emergency Farm Mortgage Act, which was designed to prevent debt-ridden farmers from losing their land. The National Industrial Recovery Act, a major cornerstone of the New Deal, was also struck down by a vote in the courts. The Supreme Court ruled that the Act exceeded Congress's power to regulate interstate commerce and invaded the states' rights to regulate manufacturing.

Yes, the Supreme Court also ruled against the 1934 Municipal Bankruptcy Act, which permitted any municipality or political subdivision of any state to obtain a voluntary readjustment of its debts through Federal Court proceedings. The Supreme Court found that the law violated Tenth Amendment rights of state sovereignty.

Yes, there were several other cases that challenged the constitutionality of the New Deal, including Humphrey's Executor v. United States, which involved the removal of William E. Humphrey from the Federal Trade Commission due to his opposition to the New Deal initiatives.

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