Social Security Law
Why Nations Fail: The Origins of Power, Prosperity, and PovertyThe Social Security Act established major elements of the modern welfare state in the United States, providing retirement pensions, unemployment benefits, aid to families with dependent children, and some public health-care and disability benefits. Enacted amid challenges to the New Deal in the courts, it became central to a constitutional conflict over whether a president could reshape the judiciary to protect his program—and whether Congress would defend institutional checks on executive power.
Enactment and Provisions
Before the Supreme Court ruled against Title I of the National Industrial Recovery Act in May 1935, President Franklin D. Roosevelt had already signed the Social Security Act. It formed one part of a broader New Deal effort to address the economic crisis through federal policy. Alongside retirement pensions, the law introduced unemployment benefits, aid to families with dependent children, and some public health-care and disability benefits.
Roosevelt also signed the National Labor Relations Act, which strengthened workers’ rights to organize unions, bargain collectively, and strike. Both it and the Social Security Act faced legal challenges, placing the courts at the center of the struggle over the durability of the administration’s reforms.
The Court-Packing Conflict
After winning reelection in 1936 with 61 percent of the popular vote, Roosevelt argued that he had a mandate to pursue his agenda. He proposed compulsory retirement for judges at age seventy and authority to appoint as many as six additional Supreme Court justices. Presented as the Judiciary Reorganization Bill, the plan could have enabled him to change the Court’s composition after conservative justices had struck down New Deal legislation.
The proposal met resistance even from figures sympathetic to much of the New Deal. Justice Louis Brandeis opposed efforts to erode the Court’s power and challenged Roosevelt’s claims that the justices were overworked. Public opinion was also unfavorable: polls indicated that only about 40 percent supported the plan. Although Roosevelt’s party held large majorities in both chambers of Congress, the House largely declined to take up the measure. The Senate Judiciary Committee returned it with a negative report, and the Senate voted 70 to 20 to send it back for revision. The court-packing provisions were removed.
Constitutional Consequences
Roosevelt did not succeed in removing the Supreme Court’s constraints on presidential power. Yet the confrontation did not prevent the Social Security Act or the National Labor Relations Act from taking effect: both were ultimately ruled constitutional by the Court. The account therefore distinguishes the defeat of the proposed judicial restructuring from the survival of the legislation it was meant to protect.
The episode also illustrates how political institutions can constrain leaders even when doing so conflicts with their immediate policy interests. Congress could have backed a measure intended to safeguard New Deal laws, but legislators resisted giving the president power to weaken judicial independence. The Social Security Act thus stands both as a major expansion of federal social provision and as part of a wider institutional struggle in which the means of preserving reform were themselves contested.