National Recovery Administration

Definition

The National Recovery Administration (NRA) was a New Deal agency established in 1933 to promote industrial recovery and fair competition during the Great Depression. By setting codes of fair practices for industries, the NRA aimed to stabilize prices, stimulate economic activity, and improve labor conditions through collective bargaining and minimum wage standards. It played a crucial role in the larger context of New Deal labor legislation by emphasizing workers' rights and striving for better working conditions across various sectors.

5 Must Know Facts For Your Next Test

1. The NRA was a key part of President Franklin D. Roosevelt's New Deal program aimed at combating the effects of the Great Depression.
2. One of the significant achievements of the NRA was promoting collective bargaining rights for workers, allowing them to negotiate better wages and working conditions.
3. The symbol of the NRA was the blue eagle, which became a well-known emblem representing fair competition and economic recovery.
4. The Supreme Court declared the NRA unconstitutional in 1935, stating that it overstepped federal authority by regulating intrastate commerce.
5. Despite its dissolution, the NRA laid the groundwork for future labor legislation and contributed to the establishment of norms regarding labor relations in the U.S.

Review Questions

• How did the National Recovery Administration contribute to labor rights during the New Deal era?
  • The National Recovery Administration significantly advanced labor rights by establishing codes that supported fair wages and working conditions. By encouraging collective bargaining, it empowered workers to negotiate with employers more effectively. The focus on improving labor standards helped shape a new relationship between workers and management, marking a pivotal shift in labor rights during this critical period.
• Discuss the implications of the Supreme Court's ruling against the National Recovery Administration on future labor legislation.
  • The Supreme Court's ruling against the National Recovery Administration in 1935 had far-reaching implications for future labor legislation. By declaring the NRA unconstitutional, it emphasized limits on federal regulatory power over local businesses. This ruling prompted lawmakers to develop new frameworks, like the Wagner Act, which would more explicitly protect workers' rights to unionize and engage in collective bargaining without federal overreach.
• Evaluate how the National Recovery Administration influenced economic policy and labor relations in America following its establishment.
  • The establishment of the National Recovery Administration profoundly influenced American economic policy and labor relations by setting a precedent for government involvement in regulating industry standards and promoting workers' rights. While its eventual demise highlighted challenges in federal regulation, its efforts paved the way for subsequent labor reforms and a more organized labor movement. The legacy of the NRA can be seen in later legislation that continued to advocate for fair labor practices and protect worker interests in an evolving industrial landscape.

Related terms

NRA Codes: Set regulations created by the National Recovery Administration that established fair wages, prices, and working conditions for industries.

Wagner Act: Also known as the National Labor Relations Act, this 1935 law protected workers' rights to organize and engage in collective bargaining.

Public Works Administration: A New Deal agency that aimed to provide jobs and stimulate the economy through large-scale public works projects.