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National Industrial Recovery Act (NIRA)

Definition

The National Industrial Recovery Act was a law passed in 1933 as part of President Franklin D. Roosevelt's New Deal. This act aimed to stimulate the economy during the Great Depression by regulating industry and raising wages and prices.

Analogy

Think of NIRA like a strict coach for a struggling sports team. The team is the American economy during the Great Depression, and it's not performing well. The coach steps in with new rules (industry regulations) and incentives (higher wages) to help improve the team's performance.

Related terms

New Deal: A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.

Great Depression: A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

Fair Labor Standards Act: A federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.