Frequently Asked Questions

Why was Title I of the National Industry Recovery Act deemed unconstitutional by the U.S. Supreme Court in 1935?

Title I of the National Industry Recovery Act (NRA), enacted in 1933, was deemed unconstitutional by the U.S. Supreme Court in 1935. The NRA was a key component of President Franklin Roosevelt's New Deal reforms, aimed at revitalizing the American economy during the Great Depression. The Act sought to establish codes of "fair competition" and set wages and hours in industries that adhered to these codes. Title I of the Act specifically provided that all codes of fair competition approved under the Act should guarantee the right of employees to collective bargaining without interference or coercion of employees. However, the Supreme Court found this provision unconstitutional. The Court's decision was based on the grounds that the Act delegated legislative power to the President, which was a violation of the separation of powers principle. The Act also attempted to regulate businesses that were not engaged in interstate commerce, which was beyond the powers of the federal government.