Elements Of National Industrial Recovery Act

To help recover the nation, the New Deal was designed to bring the economy back to its pre-depression levels. It achieved that by deficit spending, dropping the gold standard, and increasing foreign trade. To reform the nation, the New Deal made it possible for the economy to be stabilized. The reform measures that President Roosevelt proposed included the NIRA or the National Industrial Recovery Act, the regulation of Wall Street by the SEA or Security Exchange Act, the AAA or Agricultural Adjustment Act that was intended for farm programs, the FDIC or the Federal Deposit Insurance Corporation that dealt with insurance for bank deposits, as well as the Wagner Act, which dealt with labor-management relations.

Soon after taking office, Congress passed the National Industrial Recovery Act (NIRA). The NIRA was a single program, but there were numerous sub-programs under the act. It was designed to satisfy the conflicting pressure groups and 3.3 billion dollars were used for it. Roosevelt set up the National Recovery Administration (NRA) in hope of stabilizing the economy by reducing unemployment, paying decent wages to workers so they could purchase products, limiting overproduction so prices would rise to a profitable level, and eliminating cutthroat competition. This law also contained a provision that guaranteed labor the right to collective bargaining. There were a lot of goals to be reached and it would difficult to accomplish them, but Roosevelt felt it was necessary for the recovery of society. Guidelines for codes of the above goals were to be arrived at jointly by representatives of management, labor, and the public. The NIRA took off and was very popular. By the time the code making phase ended about seven to eight months later, 557 basic codes and 200 supplementary ones had been approved by the NRA. But, it became obvious that the codes were not being jointly agreed upon, but the management group was mainly writing them. So the NRA experiment was declared

Unemployment continued and so did the Depression. The National Recovery Administration alienated business, and failed in encouraging private expansion or investment. Although it stopped the decrease in the prices of consumer goods, it failed to create new jobs and also contributed to feelings of animosity within the nation. The unemployment rate continued to hold devastating statistics as it never dropped below 14 percent and averaged 17 percent for the entire decade of the 1930s. The New Deal tripled federal taxes from $1.6 billion in 1933 to $5.3 billion in 1940, causing the American public to lose a lot of money. A number of New Deal laws, which included 700 industrial cartel codes, made it more expensive for employers to hire people and consequently discouraged hiring. The frequent changes in the tax laws combined with FDR’s anti-business ideology discouraged people from making investments that were essential for economic growth and an increase in jobs. The security laws of the

These actions are similar to the actions taken by Theodore Roosevelt during the progressive era. The ideas of the National Recovery Administration contains ideas that further the ideas and events during Theodore Roosevelt’s presidency. During his presidency, Theodore Roosevelt intervened in the coal strike of 1902, where he showed strong support for the workers. This is similar to Franklin D. Roosevelt’s New Deal policies that involved the Federal Government directly helping the working class people. Furthermore, the progressive era showed strong support “for legislation regulating child labor and workplace safety” (Reform). Through the National Recovery Administration, child labor was ended (The Great). Even after the Supreme Court ruled the National Recovery Administration unconstitutional in the Schechter case, the basic principles of both the progressive era labor union reforms and the National Recovery Administration were carried through in Franklin D. Roosevelt’s 1938 Fair Labor Standards Act (FLSA). This new act readministered many of the regulations issued by the National Recovery Administration; this act “set a minimum wage, maximum working hours, and forbade children under 16 from working” (The Great). Similarly, by 1910 of the progressive era, state laws were already established that regulated the minimum age for children to work at an age between 12 and 16 and also set a maximum length to a workday and a

As the United States endured the hardships of the Great Depression, the struggles of the working class grew and employers were able to take advantage of desperate workers by overloading hours and shrinking wages. In 1938, President Franklin Roosevelt, in his New Deal legislation, saw the opportunity to attend to the issues concerning workers involved in interstate commerce. The Fair Labor Standards Act was passed, and the President described it in the following way “Except for the Social Security Act, it (the FLSA) is the most far-reaching, far-sighted program for the benefit of workers ever adopted here or in any other country.” (Nordlund). The FLSA, as it is known, set a maximum number of

The New deal of 1933 is often regarded at the height of the government’s beneficial support for the rights of the worker. The overall aim of the legislation was to decrease unemployment left in the wake of the Great Depression, as well as improve the rights of those who had already found employment in the unskilled labour force. The National Industry Recovery Act marked a significant change in the attitude of the Governments that had gone before, in that Roosevelt’s economic plans tended to support the worker over the employer, seeking to guarantee minimum wages, as well as the rights of trade unions to exercise collective bargaining techniques. The real benefits of the act were limited in that it was ruled unconstitutional by the Supreme Court, as it infringed on State’s rights. Despite this, the prospects for greater improvement in labour rights had never been better, as there was now a President who not only

The New Deal was a specific set of government works programs put into effect by President Roosevelt in response to the Great Depression. The New Deal took action to bring fast economic relief as well as improvements in industry, finance, agriculture, housing, the labor force, etc. The traditional American policy of laissez-faire was opposed in the new democratic promise of the “New Deal”. The majority of the New Deal was enacted in the first couple months of FDR’s presidency, which later became known as the Hundred Days. The first objective was to lessen the hardship of the large amount of unemployed workers in the nation. The Works Progress Administration(WPA) and Civilian Conservation Corps(CCC) were created to establish short term government aid to temporary jobs. The National Recovery Administration (NRA) was created to develop rules to govern trade practices, hours, child labor, wages, and collective bargaining. Also, the New Deal worked to avoid another stock market crash and bank failures.The Federal Deposit Insurance Corporation (FDIC) gave insurance for bank deposits and the Securities and Exchange Commission (SEC) was created to protect the people from stock-market companies committing fraud. An agricultural program , the Agricultural Adjustment Administration (AAA) attempted to raise prices by providing subsidies to farmers to reduce crop production. The New Deal was filled with government works programs to help pull the country out of the Great Depression but,

DBQ The progressive era was a time of great social, economic, and political change in the United States that marked major changes in the daily lives of Americans. Between 1870 and 1920, reform movements for almost all aspects of American life took place. Although these reform movements did not affect the upper class, they would shape the majority of society leading all the way up to World War I. Changes in Political initiative, economic policy, and the social environment shaped the time period. American Expansionism and Civil Service examinations changed the political scene while new economic policies like the antitrust acts and the creation of the federal reserve reformed the period’s economic system.

Another one of the New Deal's contradictory reforms was the National Industrial Recovery Act. The principle was to establish minimum wages and prices and general labor regulations. On one hand, it sought to keep wage rates high and give the consumer greater purchasing power. On the other hand, it established hundreds of legally sanctioned industry-wide cartels that were allowed to establish standard wages, hours of operation and minimum prices on their own terms. The minimum prices meant that businesses would be prevented from underselling each other. The artificially high wages also meant that unemployment would continue to rise. High prices for goods were not the right path to take since the United States economy was in the biggest depression it had ever seen. In 1935, the Supreme Court declared the NRA unconstitutional, on the grounds that the United States government had no right to regulate intrastate commerce, since it was a power usually granted to state governments. To replace parts of the NRA, Congress passed the National Labor Relations Board and

Beginning in October 19, 1929 and ending in 1939, the American people had no hope having endured severe unemployment, food shortages, and dreadful living conditions. Life started to turn around when Franklin D. Roosevelt stepped into office and put his New Deal programs into play. Franklin and his administration quickly addressed the problems that had led to the Great Depression by executing policies that would successfully address reform, relief, and unsuccessful recovery. Following World War II it ultimately repaired most of America from the Great Depression but, Franklin’s New Deal programs were the major cause that stopped America’s economic downfall. By Franklin stepping into office and presenting his New Deal programs, this relieved

The Antitrust Act permitted the good monopolies, which helped the growth of the economy, a perfect example was the U.S Steel company, that produced a high quality steel and sold it for a greatly reduced price, although it suppressed competition. This Act not only protected the U.S. economy, but protected the small companies, proportioning opportunity for competition. So the Antitrust Act was one of the most important reforms in the Progressive Era, because helped

The National Recovery Administration was created by Franklin D. Roosevelt as part of the New Deal policies. The National Recovery Administration increased the prices of manufactured goods. It hurt the farmers that needed to buy tools and equipment. As they did not have the money to buy the taxed equipment, they could not do their job. It was a detriment both the consumers and the companies. “New Deal spending was supposed to stimulate the economy, but New Deal taxing depressed the economy.”

Additionally, Section 8 proscribes federation fraudulent labor procedures, which include, in accordance to legal interpretation, failure to provide a reasonable representation to all participants of the bargaining constituent. (Office of the General Counsel, National Labor Relations Board, 1997)

In June 1933, the National Industrial Recovery Act (NIRA) was made to regulate the economy and established by the U.S. Congress. The law was designed to establish cooperation among government and business to promote recovery and reform, encourage collective bargaining, establish codes of fair, business practices, set up fixed work hours, and wages. It also set prices of products and to ban child labor in industry.The act made the federal government let businesses regulate among themselves and have fair competitions because Roosevelt wanted friendly competition and he wanted to protect employees and competitors. The NIRA also provided money to other states so they can create jobs in construction of schools and other types of useful buildings.

The next step in FDRs New Deal is recovery. The objective of the National Recovery Administration was to create codes for businesses to follow. These codes would then help to provide minimum wages for employees, restrict the number of hours worked to prevent over time and set prices and production levels. The goal was to fix the American economy by limiting competition, rising power purchased by the consumer and hiring unemployed workers back to work for them once more. By mid-1933, the new agency achieved the voluntary acceptance by nearly 600 industries of new codes. The new codes covered nearly 30 million workers. One problem was that the chief administrator was chosen because of his well-known service in the WIB during World War I. Sadly,