Supreme Court vs. New Deal's NIRA
The National Industrial Recovery Act (NIRA or NRA) was the centerpiece of the early New Deal legislation. It organized industries into cartel-like structures with codes of conduct. Included in the codes was a minimum wage requirement and a vague requirement to allow collective bargaining. The Supreme Court voided the NIRA on the grounds that it overstepped Congress's right to regulate the economy under the interstate commerce clause. At that time, the clause was interpreted as being limited to transportation over state lines such as railroads. This video depicts that situation just before the NIRA was invalidated in 1935. That decision led President Roosevelt to propose that Congress enlarge the Supreme Court beyond the 9 justices so that he could appoint more judges. His "court packing" proposal was rejected but the Supreme Court enlarged its view of interstate commerce in 1937.