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The Legacy of the New Deal

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					Today’s Lecture:

The New Deal Legacy

Number:

19

Lecture Organization:

• Class Announcements • Deficit Philosophy
• Wealth Politics

• Bureaucratic State • President-Centric Government • New Federalism

Class Announcements

grades -- essays will be finished today (check your emails later in the afternoon)

Class Announcements

Website -- will be current over the weekend (Saturday)

Questions?

Deficit Philosophy

Keynesian Economics -- FDR initially believed in balanced budgets (Keynesian economics comes later in the term) -- Deficits might be good? • England in the late 1600s – early 1900s (depends upon whether you get a return on the investment)

(Explain WWII debt and post-war generation)

Wealth Politics
taxation -- “progressive” • During the Great Depression and World War II, the top income tax rate rose to 75%. The top rate reached 94% during the war and remained at 91% until 1964.

President-Centric Government

The President Leads

-- chief legislative officer -- up to 80% of the legislation passed is introduced by the president -- the agenda power

President-Centric Government

The is more legitimate than Congress?

-- controversial -- the argument: • more meaningful democratic ritual (turnout & awarness [compared to off year]) • public approval of the institutions (Congress is low)
• power of the job fluctuates with polls (e.g., Jimmy Carter wasn’t powerful)

President-Centric Government

Has a solution for pressing national issues

-- we expect the president to have a plan (even Conservatives have massive agendas) -- If there is a strong national problem, president had better have a plan of attack
compare to 1800s
• the economy going bad in the 1800s?
• disease in the 1800s?

• Hurricane? • Can’t afford health insurance?

President-Centric Government

power fluctuates

• Popularity • Economy • Party in Power (mandates, coattails) • Crises • Policy success or failure

President-Centric Government

power fluctuates

things that make presidents weaker
• election cycle

• lame duck • perceived failure
• poor management skills (Carter)

Bureaucratic State

A Fourth branch of Government?

-- how does the President and the government wield these new activist powers?

Fourth Lawmaking Branch?

Executive

Legislature

Courts

Branch

Administrative Agencies
executive orders precedent

statutes

rules

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New Federalism

The Constitutional Philosophy of the New Deal

-- The New Deal really was a NEW DEAL -- The idea: • let’s have a new constitutional bargain • let’s let the Federal government lead in policy matters

The American Experiment

Bicameral Assembly
PRESIDENT SENATE HOUSE JUDICIARY

“Limited Government” What can this creature do? • the “laundry list”

STATES
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Federalism

What Simon Says -- The first three articles of the Constitution specifies what each branch can do

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Article I:
The Congress

Article II: President

Article III:
Judiciary

Federalism

the basic problem -- The basic problem is that the 1787 Constitution does not appear to allow Congress to do very much that it would want to do in the modern era of governance
-- for example …

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Crimes Clause

Congress has the power to … To provide for the Punishment of counterfeiting the Securities and current Coin of the United States; To define and punish Piracies and Felonies committed on the high Seas, and Offences against the Law of Nations; Question: Question:

Is Congress allowed Is Congress allowed to criminalize anything to wage a and other than counterfeiting, piracy drug war? international-law violations? If not, how come we have an FBI and a massive 2007 federal police 3/3/2009 Copyright, Sean Wilson. state today?

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Federalism
“Laundry List” -- Let’s take a look at the list of powers enumerated in section 8 and 9 of Article I

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“The Laundry List”

• Tax & Spend for the general

welfare. • Borrow Money (deficits) • Bankruptcy and Immigration • Coin Money • Weights and Measures • Post Offices and Roads • Patents • Inferior courts • Punish certain crimes** • Declare War • Raise & regulate the military • the proper way to tax • No titles of nobility

• Punish Securities fraud/forged currency • Regulate commerce with nations & among states** • Suppress insurrection w/federal forces • Exclusive governance of the capital and forts** • Can’t prohibit the slave trade until 1808. • Can’t suspend habeas corpus unless insurrection • No bill of attainder/ex post facto laws • Enforce the 14th A. (Due Process, Equal Protection) • Enforce the 13th A. (No slavery)

10th Amendment

“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

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Commerce Clause

Congress has the power to …
“Congress shall have the Power to regulate Commerce with to regulate Commerce with Commerce with foreign Nations, and among the several States, and with the among the several States, and with the Indian Tribes” Three basic ideas:

-- It must be “commerce”
-- It must be “interstate” -- and THAT must be the objective?
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Question: Question: Question: Question: “The Laundry List” Question: Question: Question: Question: Question: Is it Congress pass that Could good or bad to a Can Can be limited toa CanCongress pass the CanCongress pass a Congressmakestry clean CanCongress people Can Congress outlaw law thatCongress outlaw lawglobal Congress ban that warming? mandatedprohibit fixlawto burning to the discrimination? law air,prohibit etc.?minors tobacco sales of 1787to tocure poverty? laundry abortion? lawthewater,list?gay medical marijuana? prohibit Should buy health insurance? theinside state borders? federal government American flag? marriage? • Tax & Spend for the general • Punish Securities fraud/forged currency have modern power?
welfare. • Borrow Money (deficits) • Bankruptcy and Immigration • Coin Money • Weights and Measures • Post Offices and Roads • Patents • Inferior courts • Punish certain crimes** • Declare War • Raise & regulate the military • the proper way to tax • No titles of nobility • Regulate commerce with nations & among states** • Suppress insurrection w/federal forces • Exclusive governance of the capital and forts** • Can’t prohibit the slave trade until 1808. • Can’t suspend habeas corpus unless insurrection • No bill of attainder/ex post facto laws • Enforce the 14th A. (Due Process, Equal Protection) • Enforce the 13th A. (No slavery)

The Arrival of the Modern Era

FDR comes to town
modern “commerce power”

-- Today, for Congress to discharge its “commerce power,” all that it has to do is pass ANY law that:
(a) theoretically affects the economy (b) in the aggregate, whether by act or omission (c) no matter that the law is not actually intended as a commercial regulation let’s take a closer look …
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the test:
theoretically affects

in the aggregate (omissions count) motive of the legislation doesn’t matter

Question: Question: Question: Question: Question: Question: CanCongress pass a Congress outlaw Can Is thereCongress prohibit Could Congress pass a Can anything happen? localto prohibit gay use didmedical of this Congress makes people law Howburning(so the can’t do of law that the marijuana? long as health insurance? does not violate buy it marriage? flag? American the Bill of Rights)?
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Congress has the power to …

“society”

the General Welfare “Congress shall have the Power to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes”

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Article I – Powers of Congress
Section 8 •
“Do-All Clause”

power to Regulate Commerce • power to Spend for General Welfare • power to Punish Piracy on the High Seas • power to Regulate the Armed Forces • Coin and Borrow Money Question: • Etc., etc, Is this good or bad? • Etc., etc,

The Big Picture

Social Transformation
-- One of the things to keep in mind is how the world changed

-- Think about what it was like to live in the horse-andbuggy commerce-clause era (think about it)

The Big Picture

Structural changes in the Constitution -- Consider what we have done to the constitution: • direct election of senators • direct election of the president • democratization of the vote • democratization of the primaries

The American Experiment

Bicameral Assembly
PRESIDENT SENATE HOUSE JUDICIARY

ELECTORAL COLLEGE

STATES
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The Point

The American Experiment

1. It is logical that the status of the states eroded as the people became more significant
2. Remember something else: the Virginia Plan would have exercised considerable dominatinon over states. Relevant elites in post-colonial culture almost went for that. It is not a stretch to think that in today’s world the New Deal might fit the Constitution’s new architecture better
ELECTORAL COLLEGE

PRESIDENT

SENATE

HOUSE

JUDICIARY

STATES
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The Big Picture

A Parliamentary System for Federal Power? -- To some extent, one can make an argument that we no longer have a section 8 to Article 1 if the Constitution

-- To some extent, you can say that it is been sort of washed away, and that we really have a kind of parliamentary system


				
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Description: Slides for a lecture given in Philosophy and Development of American Government. See http://ludwig.squarespace.com/amgovcourse-page/