Frequently Asked Questions

What was the significance of the National Industry Recovery Act passed in 1933?

The National Industry Recovery Act (NIRA) of 1933 was a significant piece of legislation during the Great Depression era in the United States. It was part of President Franklin D. Roosevelt's New Deal, a series of programs and policies aimed at economic recovery and reform. The NIRA was designed to stimulate economic recovery by ending the destructive competition and labor practices that had contributed to the Depression. The Act established the National Recovery Administration (NRA), which was tasked with creating industry-wide codes of fair competition. These codes set standards for output, prices, and working conditions. By doing so, the NIRA aimed to stabilize the economy, reduce unemployment, and improve working conditions. It also allowed workers to organize and bargain collectively, which was a significant step forward for labor rights. However, the NIRA was controversial and faced legal challenges. In 1935, the Supreme Court declared it unconstitutional, arguing that it gave the federal government too much control over the economy. Despite its short lifespan, the NIRA had a lasting impact. It marked a shift in the government's role in the economy and set a precedent for future labor legislation.