Wrapping-up the New Deal

FDR & SCOTUS Between 1933-1936, SCOTUS ruled against FDR’s New Deal in 7 out of 9 cases. *In 1936, FDR wins a landslide election, which he interprets as a mandate to press on with the New Deal. Fresh from reelection, FDR sets his sights on bringing the Supreme Court into line and thus supportive of the New Deal. The Hughes Court

Why the challenge? The SCOTUS: rejected federal authority to regulate industrial & agricultural production defended the 10th Amend powers reserved to states and citizens argued that the Constitution gave no power to the Executive or Legislative branches to promote the general welfare New Deal programs like the AAA, went beyond the powers delegated to the federal govt. refused to allow New Deal programs to broadly interpret the power to regulate interstate commerce forced the FDR administration to be more thoughtful to the legislation being proposed

The Judiciary Reorganization Bill of 1937: FDR attempts to “Pack the Court” Six of the nine high court justices were 70+ years old. For those that didn’t retire at 70, FDR wanted to appoint an additional justice. Widespread criticism of FDR’s “Court Packing Scheme”. While the effort fails and it remains a stain on FDR’s legacy, SCOTUS effectively stopped its opposition to the New Deal.

First & Second New Deals First New Deal (1933-35) Focus – Relief, Recovery, Reform “First Hundred Days” Bank Holiday Emergency Banking Act Glass-Steagall Act Fire Side Chats CCC FERA AAA TVA NIRA SEC Second New Deal (1935-36) Responded to critics with more spending and a focus on long- term reforms. WPA Social Security Soil Conservation and Domestic Allotment Act Wagner Act US Housing Authority Indian Recovery Act Rural Electrification Act

The New Deal as a transformative moment in history: Challenged old power structures and created new ones. Created new social roles & opportunities for growing number that worked for government, unions, and in agriculture. Advanced American pluralism by opening jobs/power to Catholics, Jews and Blacks. Shifted the center of American politics by taking responsibility for: Steering the economy Promoting social welfare Regulating and protecting labor unions Curbing the abuses of government *Afterward, Americans would increasingly expect their government to ensure prosperous times, good jobs, and high wages as well as to aid those unable to fend for themselves. **Traditional, conservatives still clung to: self-help, limited government, states’ rights, and fiscal responsibility. The New Deal Political Coalition will dominate American politics for over 50 years.