National Industrial Recovery Act
Enactment of NIRA
Industrial work was one of the main focuses under President Franklin D. Roosevelt's New Deal program. This New Deal was brought about by the devastation of the American people during the Great Depression, which had begun in October of 1929. The National Industrial Recovery Act, most commonly known as the NIRA was one of, if not the most important measures of the New Deal. The act was enacted by congress on June 16, 1933 as a part of the First Hundred Days of Roosevelt's first term in office.[11] It was to last two years with the purpose of providing relief to the nation's economy.
Passing the Bill
When it came to passing the bill, there was much debate between the House of Representatives and the senate. On June 9 and 10 of 1933, they joined the two versions of the bill and finally approved a final version. The House voted 325-76 [12] and Senate 46-39 with much more hesitation due to NIRA’s suspension of antitrust laws. But ultimately the bill was passed and signed to law by President Roosevelt on June 16 and was divided into two main parts.
Title I and Title II: Codes and PWA
Title I focused on industrial recovery. It promoted the organization of industry for trade along with the enforcement of “codes of fair competition”.[13] It allowed for fair competition with the exemption of antitrust laws for businesses as long as they didn’t promote monopolies or provide unfair competition against small businesses. The “codes for fair completion” were enforced with the purpose of giving employees the right to organize and bargain collectively. Also, employees were not required to join or not join a labor organization. Ultimately its goal was to set standards for minimum wages, minimum working hours, and business practices such as working conditions. [13] Title II established the Public Works Administration (PWA) and provided $3.3 billion for it. Its purpose was to help provided numerous Americans with jobs and reduce unemployment rate by calling for the construction of public highways, bridges, roads, etc.
Creation, Purpose, and Outcome: NRA
The NIRA created the National Recovery Administration (NRA) with the primary purpose of representing and implement industrial codes for industries to put into action. More than 500 codes were created for fair practice. The Blue Eagle iconically represented the NRA. Countless criticism hit the NRA and several businesses were unhappy with the codes due to the lack of profit.[13] It was ultimately having no actual positive effect on labor; the collective bargaining promised by the NIRA had little success. Ultimately the codes failed in helping the nation recovery because its raising prices weakened the economic growth situation instead of improving it. It seemed as if it was intended to help employers instead of employees, but regardless in many cases the codes were manipulated or even sidestepped. The NRA increasingly continued to lose public support. It was due to expire in June of 1935 but the Supreme Court ruled it unconstitutional on May 27, 1935 due to the violation of the U.S. Constitution's separation of powers.[14]
[15] McNally, Deborah, and Mary Lou Ricker Mall. The Social Welfare History Project, "The National Industrial Recovery Act of 1933." Last modified 09 27, 2012. Accessed November 8, 2013. http://www.socialwelfarehistory.com/eras/national-industrial-recovery-act-of-1933/.
[16] General Records of the United States, . OurDocuments, "National Industrial Recovery Act (1933)." Accessed November 4, 2013. http://www.ourdocuments.gov/doc.php?flash=true&doc=66.
[17] The U.S. National Archives and Records Administration , "Teaching With Documents: FDR's Fireside Chat on the Purposes and Foundations of the Recovery Program." Accessed November 6, 2013. http://www.archives.gov/education/lessons/fdr-fireside/.
[18] Ohio History Central , "National Industrial Recovery Act (1933)." Accessed November 8, 2013. http://www.ohiohistorycentral.org/w/National_Industrial_Recovery_Act?rec=1465.
[16] General Records of the United States, . OurDocuments, "National Industrial Recovery Act (1933)." Accessed November 4, 2013. http://www.ourdocuments.gov/doc.php?flash=true&doc=66.
[17] The U.S. National Archives and Records Administration , "Teaching With Documents: FDR's Fireside Chat on the Purposes and Foundations of the Recovery Program." Accessed November 6, 2013. http://www.archives.gov/education/lessons/fdr-fireside/.
[18] Ohio History Central , "National Industrial Recovery Act (1933)." Accessed November 8, 2013. http://www.ohiohistorycentral.org/w/National_Industrial_Recovery_Act?rec=1465.