1. FDR, the Supreme Court, and the end of the New Deal
New Deal Under Fire
FDR, the Supreme Court, and the end of the New Deal

2. Critics & Demagogues American Liberty League
Industrialists opposed to dictatorial policies
Dr. Francis E. Townsend
Townsend Plan - $200/mo to retired 60+
Father Charles Coughlin - “radio priest”
Natl. Union for Social Justice
Urban lower-middle class anti-New Dealers
Huey Long - Share Our Wealth Plan
Tax rich & redistribute $ (class warfare)
Long assassinated in 1935

3. The Supreme Court & the New Deal
Conservative Court led by Charles Evans Hughes
The Schechter Case 1935 strikes down the NRA
Fed Govt. can’t regulate intra state commerce
NRA gave regulatory powers constitutionally reserved for legislative branch to executive branch
The Supreme Court during the Depression tended to be hostile toward government-fostered social improvements that restricted individual initiative.
In Schechter v. United States (1935), the Court unanimously declared the NRA unconstitutional on the grounds that it granted legislative powers to the Executive Branch and that the agency had been given the power to control intra-state commerce
The case involved a poultry dealer who was prosecuted for violating NRA codes governing the quality of chickens he sold. The court ruled that the poultry industry was not inter-state but rather intra-state.

4. More on the Court… U.S. v Butler 1936 strikes down the AAA
Processing tax used to fund subsidies found unconstitutional
NRA & AAA are the heart of the New Deal

5. 1936 Election FDR v Alfred Landon
Both sides avoided real issues
Republicans attacked New Deal as socialistic
But have no alternative plan
FDR win 46 out of 48 states (523 to 8) - a mandate!
1936 campaign marked by a vigorous defense and a bitter denunciation of the New Deal.
Dems renominated FDR without opposition
Repubs had little confidence of victory to begin with, regardless of their candidate. The party chose the centrist Governor of Kansas, Alfred M. Landon
Neither candidate debated the core issues that separated their parties
Merits of direct federal aid
Centralization of power in national govt.
Delegation of unusual authority to the president
Deficit spending and the unbalance budget
Dems simply defended their record
Repubs attacked the ND as socialistic and reckless experimentation but offered no alternative plan of their own.
Their campaign was sloppy and hesitant while the Democrats ran a confident and focused campaign.
Landon was dull while FDR was dynamic.
FDR easily won a second term with 46 of 48 states.
The landslide victory gave FDR a mandate to continue the New Deal

6. 6 of 9 Justices are over 70 years old.
FDR and Court Reform
6 of 9 Justices are over 70 years old.
Court is divided with Justice Owen Roberts as the swing vote

7. FDR’s “court packing” plan
For every justice 70 or older, President could appoint another justice
Would expand Court to 15 members
Change the balance of power
Clearly politically motivated
FDR viewed his landslide election as a clear mandate from the people and a firm endorsement of the New Deal.
In order to safeguard the ND from a hostile Supreme Court, FDR turned his attention toward circumventing the Court.
Though his motives were clearly political, FDR stated that he believed the elder members of the court to be overworked.
To ease their workload, he proposed to add one Justice for each over the age of 70 (6 at the time)
The court packing bill was officially known as the Reorganization Plan of 1937.
The reaction to the bill was very negative, especially among conservatives. FDR was not able to convince enough conservative Democrats to support the bill and it died. This was the first major defeat of a Roosevelt program in Congress.

8. Congress rejects the plan
FDR’s 1st Congressional defeat
Would undermine “separation of powers” if permitted
And independence of the Judicial branch

9. Court Revolution of 1937
Justice Roberts softens stand on ND & turns majority in favor
Between retirements or deaths of 4 justices
enabled FDR to appoint New Dealers
Ultimately appoints 8 Justices
A reversal in philosophy of court

10. The Second New Deal
National Labor Relations Act (Wagner Act) replaces NRA
Created NLRB to protect labor
Guaranteed collective bargaining
Congress re-adopts the AAA 1938
Did not rely on processing tax
FAIR LABOR STANDARDS ACT 1938
set minimum wage (.25) & over time
Prohibited child labor

11. The Roosevelt Recession
After improving in , economy crashed again
FDR tried balancing budget by cutting some programs
Resulted in higher unemployment
Soc. Sec. tax also reduced pay
FDR blames Fed for cutting $ sup.
Renews public works programs

12. Congressional Elections of 1938
Republicans won many seats in Congress Also won 13 governorships
Imminent war in Europe drew attention
The New Deal ended quietly
Despite major achievements, the New Deal had lost momentum after 1935.
Congress became wary of FDR after the Court Packing plan and a 1937 plan by the president to reorganize the executive branch into 12 superdepartments under his direct authority.
Critics accused FDR of trying to create a dictatorship.
The Republicans won House and Senate seats in the 1938 midterm election and secured 13 governorships as well.
With the growing threat of war in Europe, the President and Congress turned their attention overseas.
In his1939 State of the Union Address, FDR spoke of foreign policy and mentioned only that there was a need to “preserve our reforms”
No new domestic programs were proposed.
The New Deal had come to an end.

13. New Deal Record Restored hope Preserved capitalism
Failed to end the Depression
Expanded role of Federal government
Era of big government begins