National Recovery Administration

Definition

The National Recovery Administration (NRA) was a key component of President Franklin D. Roosevelt's First New Deal, aimed at addressing the economic crisis of the Great Depression. It was established in 1933 with the goal of promoting economic recovery through industry self-regulation and cooperation between businesses, workers, and the government.

5 Must Know Facts For Your Next Test

1. The NRA was created as part of the National Industrial Recovery Act (NIRA), which was passed by Congress in June 1933 as a key component of President Roosevelt's First New Deal.
2. The NRA allowed industries to develop their own 'fair competition' codes that set minimum wages, maximum hours, and other labor standards, with the goal of preventing 'cutthroat competition' and stimulating economic recovery.
3. Businesses that agreed to follow the NRA's codes were allowed to display the 'Blue Eagle' logo, which was meant to encourage consumer support for companies participating in the program.
4. The NRA's efforts to regulate industry and promote economic recovery were challenged by the Supreme Court, which ruled the NIRA unconstitutional in 1935, leading to the NRA's demise.
5. Despite its eventual failure, the NRA represented an important early experiment in government-industry cooperation as part of the New Deal's efforts to address the economic crisis of the Great Depression.

Review Questions

• Explain the key goals and mechanisms of the National Recovery Administration (NRA) within the context of the First New Deal.
  • The National Recovery Administration (NRA) was a central component of President Franklin D. Roosevelt's First New Deal, established in 1933 with the goal of promoting economic recovery through industry self-regulation and cooperation between businesses, workers, and the government. The NRA allowed industries to develop their own 'fair competition' codes that set minimum wages, maximum hours, and other labor standards, with the aim of preventing 'cutthroat competition' and stimulating economic growth. Businesses that agreed to follow the NRA's codes were allowed to display the 'Blue Eagle' logo to encourage consumer support. While the NRA represented an important early experiment in government-industry cooperation as part of the New Deal's efforts to address the Great Depression, its regulatory efforts were ultimately challenged and ruled unconstitutional by the Supreme Court in 1935, leading to the NRA's demise.
• Analyze the relationship between the National Recovery Administration (NRA) and the broader goals of the First New Deal in addressing the economic crisis of the Great Depression.
  • The National Recovery Administration (NRA) was a key component of President Franklin D. Roosevelt's First New Deal, which sought to address the economic devastation of the Great Depression through a range of government interventions and programs. The NRA was specifically designed to promote economic recovery by facilitating cooperation between businesses, workers, and the government. By allowing industries to develop their own 'fair competition' codes that set labor standards, the NRA aimed to prevent 'cutthroat competition' and stimulate growth. This aligned with the First New Deal's broader goals of providing relief, recovery, and reform to revive the economy. However, the NRA's regulatory efforts were ultimately challenged and ruled unconstitutional, reflecting the broader tensions and limitations faced by New Deal programs in transforming the economic system. Despite its eventual failure, the NRA represented an important early experiment in government-industry cooperation as part of the First New Deal's multifaceted approach to addressing the Great Depression.
• Evaluate the significance and legacy of the National Recovery Administration (NRA) within the context of the Great Depression and the First New Deal.
  • The National Recovery Administration (NRA) was a pivotal, if ultimately short-lived, component of President Franklin D. Roosevelt's First New Deal in responding to the economic crisis of the Great Depression. Established in 1933, the NRA sought to promote economic recovery through a novel approach of industry self-regulation and cooperation between businesses, workers, and the government. By allowing industries to develop their own 'fair competition' codes governing wages, hours, and other labor practices, the NRA aimed to prevent 'cutthroat competition' and stimulate growth. While the NRA's 'Blue Eagle' logo was meant to encourage consumer support for participating businesses, the program's regulatory efforts were ultimately challenged and ruled unconstitutional by the Supreme Court in 1935. Despite its eventual failure, the NRA represented an important early experiment in government-industry collaboration as part of the First New Deal's multifaceted approach to addressing the Great Depression. The NRA's legacy highlights both the potential and limitations of the New Deal's efforts to transform the economic system and provide relief, recovery, and reform during a period of profound economic crisis.

Related terms

Blue Eagle: The symbol of the National Recovery Administration, which businesses displayed to show they were complying with NRA codes and regulations.

Industrial Codes: Detailed sets of rules and regulations developed by industry representatives and approved by the NRA to govern wages, hours, and other labor practices within specific industries.

Section 7(a): A provision in the National Industrial Recovery Act that guaranteed workers the right to organize and bargain collectively, which was a key part of the NRA's efforts to promote economic recovery.