Study Notes on the Rise of Antitrust and Labor Law and the New Deal

Focus on labor law due to the New Deal, contrasting with the historical context of antitrust regulations.
The Sherman Act’s interpretations and their impact on trusts during the New Deal.
Acknowledgment of how the context of trusts will evolve at a later stage.

The relationship between earlier periods in American history and the development of labor protections and antitrust laws.
The importance of time in solidifying worker protections understood to be upheld by the federal government.

Reference to the Lochner case which dealt with state regulations on bakers.
- Background: New York attempted to impose regulations through the Bakeshop Act; however, elements excluded sectors such as bakers and hotels.
- Outcome: The Supreme Court invalidated the state statute, underscoring the substantive right to "freedom of contract" under the Fourteenth Amendment.
- Freedom of Contract Emphasis: Court’s reasoning highlighted that individuals (employees and employers) should have the freedom to negotiate work hours, even against state regulations aimed at health and safety.

Focus on the nature of federal authority and the delegation of powers during emergencies (specifically during the New Deal).
Mention of FDR's popularity as a president, having served for over thirteen years.
Historical context of similar criticisms faced by Lincoln regarding the expansion of executive power during a national crisis.

Introduction of the NIRA as a New Deal program designed to regulate industrial and agricultural economy.
Creation of two key programs:
- NRA (National Recovery Administration): Regulatory program for establishing fair wages and prices, encouraging voluntary industrial alignment.
- PWA (Public Works Administration): Work relief program aimed at addressing unemployment and infrastructure.
Criticism of FDR for alleged cozy relations between business and government, drawing parallels to fascist regimes in Europe.

Known as the "sick chicken case" due to its focus on poultry regulation under the NRA.
- Background: The Schechter Poultry Corporation faced numerous indictments for violating various codes established by the NRA.
- Constitutional Argument: The corporation argued that NRA's delegation of legislative regulatory power to the president was unconstitutional.
- Supreme Court Ruling: Court ruled unanimously that the delegation of authority to the president was unconstitutional and emphasized the importance of maintaining a balance of powers as set by the Constitution.
The court distinguished between intrastate and interstate commerce, asserting that poultry production strictly within New York did not affect interstate commerce directly.
Significance of the ruling reflecting on the constitution’s necessity to not be altered due to extraordinary conditions.

Recognition of economic challenges faced by American agriculture post-World War I, including overproduction and declining market prices.
- Market Strategy: The government utilized taxation from agricultural produce to pay farmers to reduce crop production in order to stabilize prices.
- Outcome: By 1935, farmers' income increased significantly, yet concerns over the constitutionality of taxation and spending by Congress arose.

Challenge to the AAA based on the constitutionality of the taxing scheme used by the federal government.
- Court’s Analysis: Discussed the linkage between the government’s taxing power and the general welfare clause in the Constitution, concluding that the taxing method employed did not align with the purpose of promoting general welfare.
- Ruling: The court found that the AAA was unconstitutional as it was based on an inappropriate linkage of tax revenues to the federal scheme to pay farmers for reduced crop yields.

FDR faced significant backlash from the Supreme Court for some New Deal initiatives leading to a sour perception of the judiciary.
- Court Packing Proposal: Reflection on FDR's attempt to expand the Supreme Court, believing it would allow for a more favorable disposition towards his programs. Public reaction was primarily negative.
The significance of judicial independence in the U.S. system contrasted with the increasing politicization in contemporary politics.

Upcoming focus on the programs intended to protect the American worker and ongoing challenges by companies to federally imposed regulations. Discussion of freedom of contract versus federal intervention in labor conditions is anticipated in subsequent presentations.