National Recovery Administration

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National Recovery Administration

In 1933, the United States was in the throes of a severe economic depression. Unemployment was widespread, and the economic system was in chaos. An emergency measure was needed to alleviate the situation, and the members of President Franklin Delano Roosevelt's New Deal administration attempted to ease the problem with the passage of the national industrial recovery act (NIRA) (48 Stat. 195).

The chief provision of the act was the establishment of business codes to be enforced nationally. The codes included rules regarding fair competition, discontinuance of antitrust regulations for a two-year period, voluntary participation in unions, and establishment of shorter hours and better wages.

In June 1933, the National Recovery Administration (NRA) was created to supervise the execution of the NIRA under the direction of Hugh S. Johnson. During its first year, the NRA worked on the industrial codes; all participating businesses displayed a blue eagle, a sign of patriotism as well as acceptance of the program.

Many people regarded the NRA as too powerful, and in 1935 the U.S. Supreme Court declared the Codification system of the NRA unconstitutional in schechter poultry corp. v. united states, 295 U.S. 495, 55 S. Ct. 837, 79 L. Ed. 1570, due to the incorrect granting of legislative authority to the Executive Branch.

In 1936 the controversial NRA came to an end. During its brief existence, employment was stimulated, child labor was prohibited, and labor organization was encouraged.

Further readings

Bellush, Bernard. 1975. The Failure of the NRA. New York: Norton.

Himmelberg, Robert F. 1976. The Origins of the National Recovery Administration: Business, Government, and the Trade Association Issue, 1921–1933. New York: Fordham Univ. Press.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
Sometime when you're looking at movies made in the 1933-1935 period, notice the National Recovery Administration signs in every window.
In the United States, there was the constitutional problem about the National Recovery Administration. In Germany, at least until the summer of 1934, the Nazi regime looked volatile and unstable.
The union's national leaders also paid little attention to the stretch-out issue and overvalued their inclusion in the National Recovery Administration (NRA) bureaucracy.
He has inhaled fear and exhaled confidence." Two years later, however, Rogers hit both his friend in the White House and big business over the misadministration of FDR's National Recovery Administration (the arm of the New Deal intended to shorten the work week, establish a minimum wage, and let workers organize).
Here we find the demise of the National Recovery Administration and its industry codes that cartelized trucking combining with a depressed industry to create support for a government cartel.

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