Opposition to the New Deal from the Supreme Court

The early twentieth century saw a tradition in the Supreme Court which tended to reject any legislation which was seen as interfering with the working of the free market or private contracts. This was known as ‘the Lochner era’ following a decision in that name in 1905. It was then, perhaps, inevitable that the legislation passed by the Democrat-dominated Congress in the 1930s would come into conflict with this doctrine.

The Supreme Court, often with a conservative majority during the 1930s, opposed the New Deal based on two central arguments. First, they argued that the New Deal legislation overstepped the federal government's constitutional authority, particularly regarding commerce regulation, traditionally a state matter. Second, they viewed many New Deal programs as violations of individual liberty and property rights, aligning with the "Lochner era" philosophy.

The Schechter Poultry Corporation vs. United States (1935)

This case saw a unanimous Supreme Court make a judgement which undermined the National Industrial Recovery Act of 1933 (NIRA), a crucial New Deal reform. The NIRA sought to stabilize the economy by allowing industries to create "codes of fair competition" that regulated wages, prices, and working conditions. The Schechter brothers, who owned a poultry business, were convicted of violating the NIRA's Live Poultry Code. They argued that the federal government had overstepped its authority by regulating intrastate commerce, as their business operated solely within New York State.

The Supreme Court agreed with the Schechters, declaring the NIRA unconstitutional. They argued that the federal government's power to regulate interstate commerce did not extend to intrastate activities. This decision significantly curtailed the Roosevelt administration's ability to regulate the economy and struck a blow against a key pillar of the early New Deal.

United States vs. Butler (1936)

This case saw the Court invalidate another key element of the New Deal, the Agricultural Adjustment Act (AAA) of 1933. The AAA aimed to raise crop prices by paying farmers to reduce production. The government funded these payments through a tax on processors of agricultural products. The Butler family, who owned a cotton processing plant, challenged the constitutionality of the AAA, arguing that the tax was an unconstitutional attempt by the federal government to regulate agriculture, a power reserved to the states.

The Supreme Court agreed with the Butlers, striking down the AAA. The Court ruled that the tax, while technically on processors, was ultimately a regulation of agricultural production. As such, it fell outside the scope of the federal government’s power to tax and spend for the "general welfare" and infringed upon the states' rights. This decision further limited the Roosevelt administration’s efforts to address the agricultural crisis of the Great Depression.

The "Four Horsemen" and the "Three Musketeers"

The Supreme Court during this period was ideologically divided. The conservative bloc, known as the "Four Horsemen" (Justices George Sutherland, James McReynolds, Pierce Butler, and Willis Van Devanter), consistently opposed New Deal legislation. They were known for their staunch defense of laissez-faire economics and states' rights. The liberal minority, dubbed the "Three Musketeers" (Justices Harlan Stone, Benjamin Cardozo, and Louis Brandeis), generally supported the New Deal's goals and believed in a more expansive interpretation of the Constitution to address the economic crisis.

These two cases, along with the ideological divide within the Supreme Court, highlight the intense opposition the New Deal faced from the judiciary. The Court's decisions, rooted in a conservative interpretation of the Constitution and a belief in limited government, significantly hampered the Roosevelt administration's ability to implement its economic recovery programs. This conflict ultimately led to a showdown between the Roosevelt administration and the Supreme Court, culminating in the famous "court-packing" plan of 1937.


Sources

McElvaine, Robert S. _The Great Depression: America, 1929-1941_. New York: Times Books, 2009.
Leuchtenburg, William E. _Franklin D. Roosevelt and the New Deal, 1932-1940_. New York: Harper & Row, 2014.