key term - National Industrial Recovery Act (NIRA)

Definition

The National Industrial Recovery Act was a key piece of legislation passed in 1933 as part of the New Deal, aimed at stimulating economic recovery during the Great Depression. It established codes of fair competition to regulate industry and improve labor conditions, promoting both industrial growth and workers' rights, which had a significant impact on various sectors in Georgia and throughout the nation.

5 Must Know Facts For Your Next Test

1. The NIRA aimed to revitalize the economy by encouraging industries to create fair competition codes, which helped stabilize prices and wages.
2. One significant aspect of the NIRA was its focus on labor rights, including provisions for collective bargaining, which empowered workers in Georgia.
3. The NIRA also led to the creation of the National Recovery Administration, which set standards for working conditions, production, and prices across various industries.
4. Although the NIRA was initially successful in boosting employment and industrial activity, it faced legal challenges and was ultimately deemed unconstitutional by the Supreme Court in 1935.
5. In Georgia, the NIRA significantly influenced the textile industry, helping to establish standards that improved working conditions and wages for laborers.

Review Questions

• How did the National Industrial Recovery Act impact industrial practices in Georgia during the Great Depression?
  • The National Industrial Recovery Act significantly transformed industrial practices in Georgia by establishing codes of fair competition that many local industries adopted. This legislation encouraged businesses to stabilize prices and wages while promoting better working conditions for employees. As a result, workers in sectors like textiles saw improvements in their rights and labor standards, contributing to a more organized workforce.
• Discuss the role of the National Recovery Administration as established by the NIRA and its effects on labor relations.
  • The National Recovery Administration, created under the NIRA, played a crucial role in shaping labor relations during the New Deal era. It enforced fair labor standards that included minimum wages and maximum working hours while recognizing workers' rights to organize. This agency's efforts led to stronger labor unions in Georgia, improving conditions for workers who were previously subjected to exploitative practices.
• Evaluate the long-term implications of the NIRA's implementation and eventual repeal on modern labor laws and economic policies.
  • The implementation of the National Industrial Recovery Act laid foundational principles that influenced modern labor laws and economic policies even after its repeal. Although the Supreme Court deemed it unconstitutional, its emphasis on workers' rights and fair competition set precedents for future legislation like the Fair Labor Standards Act. The challenges faced by the NIRA also highlighted the need for a balanced approach between business interests and labor rights, an ongoing theme in today's economic policy discussions.

Related terms

New Deal:

A series of programs and reforms implemented by President Franklin D. Roosevelt aimed at providing relief, recovery, and reform during the Great Depression.

Public Works Administration (PWA): A New Deal agency created by the NIRA that funded large-scale public works projects to create jobs and stimulate economic growth.

National Recovery Administration (NRA): An agency established under the NIRA that aimed to enforce fair labor standards and industrial codes to promote economic recovery.