National Industrial Recovery Act

Definition

The National Industrial Recovery Act (NIRA) was a law passed in 1933 as part of the New Deal, aimed at stimulating economic recovery during the Great Depression by promoting fair competition and setting minimum wages and maximum working hours. This act represented a significant shift in federal economic policy, attempting to stabilize prices and increase employment through collaboration between government, business, and labor unions.

5 Must Know Facts For Your Next Test

1. The NIRA was declared unconstitutional by the Supreme Court in 1935, which limited its effectiveness but set the stage for future labor reforms.
2. Under the NIRA, businesses could establish codes of fair competition that regulated prices, production, and wages within their industries.
3. The act aimed to reduce unemployment by encouraging businesses to hire more workers and maintain fair wages through government incentives.
4. The NIRA also created the National Recovery Administration (NRA), which enforced the codes and sought to improve labor conditions across various industries.
5. Chicano communities were affected by the NIRA as it attempted to create jobs, but many still faced discrimination and exclusion from certain labor protections and benefits.

Review Questions

• How did the National Industrial Recovery Act aim to address the economic challenges faced by communities during the Great Depression?
  • The National Industrial Recovery Act sought to address economic challenges by promoting fair competition and establishing standards for wages and working hours. By encouraging businesses to collaborate with government entities, the act aimed to stimulate job creation and stabilize prices. This was particularly important during the Great Depression when unemployment was rampant, allowing for a more organized response to economic distress.
• Evaluate the effectiveness of the National Industrial Recovery Act in improving labor conditions for Chicano workers during the Great Depression.
  • While the National Industrial Recovery Act aimed to improve labor conditions through fair competition codes, its effectiveness for Chicano workers was limited. Many Chicanos faced systemic discrimination that excluded them from benefits and protections under the act. Although some found jobs through public works projects, overall improvements in labor rights were not uniformly felt among Chicano communities, indicating a disparity in access to resources and opportunities.
• Analyze how the Supreme Court's decision to declare the National Industrial Recovery Act unconstitutional influenced future labor reforms in the United States.
  • The Supreme Court's decision to declare the National Industrial Recovery Act unconstitutional highlighted tensions between federal intervention in economic affairs and state rights. This ruling set a precedent that limited the scope of future New Deal legislation but also led to a reevaluation of labor policies. In response, subsequent reforms focused on protecting workers' rights through more targeted legislation, ultimately contributing to stronger labor movements that sought better conditions for all workers, including marginalized groups like Chicanos.

Related terms

New Deal: A series of programs and policies instituted by President Franklin D. Roosevelt to promote economic recovery and social reform during the Great Depression.

Public Works Administration: A New Deal agency created by the NIRA to oversee the construction of large-scale public works projects, creating jobs and stimulating economic growth.

Section 7(a): A provision of the NIRA that guaranteed workers' rights to organize and engage in collective bargaining, which had significant implications for labor movements.