towns" because of their proximity to open space. Two model suburbs were set
up– Greenbelt in Washington DC and Greenhills in Cincinnati. Another aid to the
farmer was the Rural Electrification Administration (REA). Its goals were to
provide electricity to isolated areas where private utility companies did not
see it profitable to run lines and set up service. The year of 1935 brought with
it numerous reform efforts. These were the final efforts of the New Deal before
the nation geared up for war. Included in this was the National Labor Relations
Act, whose most important function was to set up the National Labor Relations
Board (NLRB), which monitored corporations to ensure worker rights and safety.
The National Housing Act created the US Housing Authority (USHA) to administer
low-interest 60-year loans to small communities for slum clearance and
construction projects. This agency also gave subsidies to those landlords
willing to offer low-income housing. A Revenue Act of 1935 capped off the New
Deal with a tax on the rich, and a tax break on the middle classmen. One of the
most important and lasting effects of the Roosevelt Administration was his into
push for the Social Security Act of 1935. This was an innovative plan that was
supposed to lead to a nation-wide retirement system. It also established a
cooperative federal-state welfare system/unemployment system. A tax was levied
on the employee, which was met dollar for dollar by the employer. This tax went
into a special fund operated by the Social Security Administration. Later in
life, when a person reached retirement, they could draw the money out of this
account that they had placed in for the last few decades. The Supreme Court was
fairly conservative, and attempted to shoot holes in many of Roosevelt’s New
Deal Programs. It felt that Roosevelt had taken his legislative presidential
power to recommend legislation too far, and that Congress was equally
responsible for allowing him to usurp the powers for reasons of what Roosevelt
claimed was a "national emergency". In a statement made in May of
1935, one of the Supreme Court Justices announced that "Congress had
delegated virtually unfettered powers to the [Roosevelt] Administration.–
something truly inconsistent with the constitutional prerogatives and duties of
Congress." The Supreme Court even went as far as to strike the entire AAA
program down, claiming that it violated state’s rights. FDR was infuriated at
the actions of the Court. He thought of them as nine old men who were living in
days gone by– far too conservative to see the economic and social needs of
today. He soon began to plan retribution, however in secrecy. Two days after
inviting the Justices to a formal social function at the White House, he called
upon his staff to write up the Judicial Reform Act of 1937. Essentially, this
document alleged that the Judicial Branch of the federal government was
overwhelmed. The Act described a desperate situation in which reform and
recovery issues were not flowing through government on a timely basis–simply
because the Supreme Court was backed up. His answer to solve the dilemma was to
use his executive power of appointment and place more Justices on the Court.
Another section of the Act suggested that at age 70 (most of the Justices were
above this age), each Justice would be supplemented with an additional Justice.
This meant up to 15 Supreme Court Justices serving at one time. Roosevelt hoped
to load the Court with social liberal Democrats who would not oppose his New
Deal Programs. This became known as his "Court Packing Scheme". The
President can appoint Justices, however, they must be approved by Congress.
After a long period of embarrassing debate, the Senate rejected Roosevelt’s
proposal. This, in turn, caused Roosevelt to reject the Senate. He set out on a
mission to purge the Democratic party of the moderate type thinker, replacing
him with the ultra-liberal. Roosevelt used his diplomatic and military powers in
the later part of his Administration nearly as much as he used his executive and
legislative powers in the first half. At the time Roosevelt took office, the
nation was suprisingly isolationistic. This started in the late nineteenth
century, and continued up to the Roosevelt Administration. When the Great
Depression hit in the 1930’s, America became even more concerned with its own
problems. However, seeing the importance of a global view and seeing the
possible impact of World War II, Roosevelt directed the country toward nations
abroad. Roosevelt described his foreign policy as that of a good neighbor. The
phrase came to be used to describe the US attitude toward the countries of Latin
America. Under the policy, the United States took a stronger lead in promoting
good will among these nations. The Platt Amendment of 1901 gave the US the right
to intervene in the affairs of Cuba. In May of 1934, the government repealed
this amendment. It also withdrew American occupation forces from some Caribbean
republics, and settled long- standing oil disputes with Mexico. Roosevelt was
the first to sign reciprocal trade agreements with the Latin American countries,
including Brazil, Columbia, Costa Rica, Cuba, El Salvador, Guatemala, Haiti and
Nicaragua. In 1935, the US signed treaties of non-aggression and conciliation
with six Latin American nations. This desire to spread ties across the Western
Hemispheres led to reciprocal trade agreements with Canada. Roosevelt also used
personal diplomacy by taking trips to various Latin American nations. In July,
1934, he became the first American president to visit South American in his trip
to Columbia. In 1936, he attended the Inter-American Conference for the
Maintenance of Peace, in Buenos Aires. Roosevelt used his diplomatic power of
recognition to resume trading between the Soviet Union and the US The
recognition was given to the Soviet government in November of 1933. This was the
first attempt at civil relations since the Russian Revolution in 1917. In 1933,
for the first time in 16 years, the two nations exchanged representatives. In
1937, Japan, at war with China, attacked a US river gunboat, the USS Panay, on
the Yangtze River, killing two US citizens. This event infuriated the American
public as well as the Roosevelt Administration. However, the US protested the
Japanese action rather than demanding action taken against them. Roosevelt used
his diplomatic power and refused to recognize the Japanese puppet state of
Manchukuo in Northern China until there was an official apology. Shortly after
Roosevelt’s statement, Japan made an official apology to the US and offend to
pay for the damages in full. Although Roosevelt set his sights upon a global
society, many Americans disagreed. This school of thought led to the Neutrality
Acts of the 1930’s. These acts, passed by Congress, prohibited the US from
furnishing weapons or supplies to any nation at war. President Roosevelt hoped
that any more of these laws that would be enacted in the future would allow more
flexibility. He disliked the fact that these Acts treated all nations the same,
whether a country had attacked another or not. World War II began on September
1, 1939, when Germany invaded Poland. Still, many Americans did not agree that
the situation was as dangerous
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