Answer:
The National Recovery Administration (NRA) and the Agricultural Adjustment Administration (AAA) were two significant New Deal programs implemented during the Great Depression. Both agencies faced legal challenges and were ultimately deemed unconstitutional by the United States Supreme Court for different reasons.
1. NRA:
The NRA was established in 1933 with the goal of stabilizing prices, promoting fair competition, and improving working conditions. It implemented codes of fair competition for various industries, which set standards for wages, working hours, and production levels. However, in 1935, the Supreme Court declared the NRA unconstitutional in the case of Schechter Poultry Corp. v. United States.
Reasons for Unconstitutionality: The Court ruled that the NRA violated the separation of powers and exceeded the authority of the federal government. It argued that the codes created by the NRA were an unconstitutional delegation of legislative power to the executive branch.
Supporters: The NRA had support from labor unions, many industrialists, and workers who believed that the agency would help regulate industry and improve labor conditions. Some saw it as a necessary response to the economic crisis and a means to prevent unfair business practices.
Detractors: Many business owners and conservatives opposed the NRA. They argued that it gave the government too much power over the economy and violated free-market principles. They saw it as an infringement on individual rights and an unnecessary intervention that stifled business growth.
2. AAA:
The AAA was established in 1933 to address the agricultural crisis by reducing crop surpluses and increasing farm income. It achieved these goals through measures such as paying farmers to reduce production and implementing price support programs. However, the Supreme Court declared key provisions of the AAA unconstitutional in the case of United States v. Butler in 1936.
Reasons for Unconstitutionality: The Court ruled that the AAA violated the Tenth Amendment, which reserves certain powers to the states. It argued that the federal government had overstepped its authority by regulating and controlling agricultural production, which was traditionally a matter for the states.
Supporters: The AAA had support from many farmers who were struggling due to low crop prices and oversupply. They believed that the AAA's measures would help stabilize agricultural markets and increase their incomes. Additionally, some economists and policymakers saw it as a necessary intervention to address the unique challenges faced by the agricultural sector
Detractors: Critics of the AAA included some conservative politicians, constitutionalists, and representatives of large-scale commercial farmers. They argued that the AAA interfered with free-market principles, disrupted agricultural production patterns, and unfairly favored certain farmers over others. They believed that the government should have a limited role in the agricultural sector and that the AAA's interventions were excessive.
It's important to note that while the NRA and AAA were declared unconstitutional, their demise did not halt the New Deal's overall trajectory. The Supreme Court rulings led President Franklin D. Roosevelt to pursue alternative approaches to achieve the goals of economic recovery and reform.