National Industrial Recovery Act

Definition

The National Industrial Recovery Act (NIRA) was a key piece of legislation passed in 1933 as part of Franklin D. Roosevelt's New Deal aimed at stimulating economic recovery during the Great Depression. It sought to promote industrial growth and improve labor conditions through the establishment of codes of fair competition, minimum wages, and the right for workers to organize and collectively bargain. NIRA's impact was significant in shaping the landscape of American industry and labor relations during a time of economic crisis.

5 Must Know Facts For Your Next Test

1. The National Industrial Recovery Act was enacted on June 16, 1933, and was one of the first major initiatives under Roosevelt's New Deal program.
2. NIRA established the National Recovery Administration (NRA), which was responsible for overseeing the implementation of industry-wide codes of fair competition.
3. The act aimed to stabilize prices, stimulate production, and ensure fair wages, with the hope that these measures would lead to increased consumer spending and economic recovery.
4. NIRA was declared unconstitutional by the Supreme Court in 1935 in the case of Schechter Poultry Corp. v. United States, leading to its eventual demise.
5. Despite its challenges, NIRA laid the groundwork for future labor rights legislation, including the Wagner Act, which solidified workers' rights to organize.

Review Questions

• How did the National Industrial Recovery Act seek to improve labor conditions during the Great Depression?
  • The National Industrial Recovery Act aimed to improve labor conditions by establishing codes of fair competition that included provisions for minimum wages and working hours. It also granted workers the right to organize and engage in collective bargaining through unions. By implementing these measures, NIRA sought to create a more equitable environment for workers, which would ultimately stimulate economic recovery as laborers had more purchasing power.
• Discuss the role of the National Recovery Administration established by NIRA and its significance in American industry.
  • The National Recovery Administration (NRA), created by NIRA, played a crucial role in regulating industry practices by setting fair competition codes. These codes aimed to eliminate cutthroat competition and establish fair wages and hours for workers. The NRA’s efforts were significant as they represented a shift toward government intervention in economic matters, emphasizing cooperation between business and labor to promote recovery during a time of severe economic distress.
• Evaluate the impact of the Supreme Court's decision on NIRA and how it influenced future labor legislation.
  • The Supreme Court's decision to declare NIRA unconstitutional in 1935 had a profound impact on labor legislation in America. The ruling highlighted the limitations of government intervention in regulating industry under the Commerce Clause. However, it also spurred new efforts towards protecting workers' rights, leading to the passage of the Wagner Act in 1935. This act expanded upon some principles established by NIRA, ensuring stronger protections for workers’ rights to unionize and engage in collective bargaining.

Related terms

New Deal: A series of programs and reforms introduced by Franklin D. Roosevelt to address the economic challenges of the Great Depression.

Public Works Administration: A New Deal agency created by NIRA that funded large-scale public works projects to create jobs and stimulate economic growth.

Wagner Act: Also known as the National Labor Relations Act of 1935, this law protected the rights of workers to organize and bargain collectively, furthering the labor protections established by NIRA.