Eighty-five years ago this past May, the Supreme Court struck down a statute that overhauled U.S. economic regulation according to principles promoted in a papal encyclical. The case was A.L.A. Schechter Poultry Corp. v. United States (“Schechter”),[1] the statute was the National Industrial Recovery Act of 1933 (“NIRA”), and the encyclical was Quadragesimo anno. NIRA, and the agency it created (the National Recovery Administration (“NRA”)), represented the high tide of the U.S.’s brief experiment with corporatism.[2] To the extent NIRA is remembered at all, it is often viewed as an unwieldy, ill-conceived–but perhaps understandable–response to the Great Depression. Among right-liberals in particular, NIRA is denounced as a shameful flirtation with an un-American authoritarian continental ideology. Indeed, the Supreme Court’s unanimous decision striking down NIRA seems to reflect distaste with the corporatist principles underlying the statute. Since 1935, however, the specific legal grounds on which the Supreme Court invalidated NIRA have either become obsolete or called into question and, in any event, Schechter’s concerns can be avoided in future legislation. Notwithstanding the historical importance of Schechter’s death-blow to American corporatism, neither Schechter nor any other constitutional principles foreclose reinvigorated corporatist reforms, which are as needed today as they were during the Great Depression.
Continue reading “Revisiting Corporatism Eighty-Five Years After Schechter”
