The National Recovery Administration (NRA) was created in 1933 by the National Industrial Recovery Act to address the Great Depression’s effects. The NRA established codes for industry self-regulation and compliance, with companies displaying the blue eagle emblem to demonstrate participation. However, a Supreme Court ruling in 1935 led to the NRA’s dissolution in 1936. The act benefited workers, but critics argued that antitrust exemptions would lead to monopolies.
The National Recovery Administration was a U.S. office created by the National Industrial Recovery Act in 1933. Spurred on by the leadership of President Franklin Delano Roosevelt, Congress passed the National Industrial Recovery Act as a way to address industrial stagnation and high unemployment rates at the peak of the Great Depression. As the administrative body responsible for enforcing the measures contained in the legislation, the National Recovery Administration, or NRA, has worked to establish a series of codes relating to industry self-regulation and competition and has encouraged companies to comply. A United States Supreme Court ruling in 1935 accusing the NRA of overstepping its boundaries led to the end of office in 1936.
Proposed by President Roosevelt as a way to ensure fairness in industry for both businesses and consumers, Congress passed the National Industrial Recovery Act in 1933. The act stipulated that codes of conduct would be established for various industries and the adherence to these codes would have allowed industries to be exempt from antitrust laws. Price levels had to be set to help consumers and conditions for employees had to be improved in terms of wages and hours worked.
As the initiator and watchdog of these codes, the National Recovery Administration has been empowered to reach out to industry leaders and ensure they are compliant. President Roosevelt appointed Hugh S. Johnson to head the new agency, and the NRA was described as a patriotic endeavor. Companies that complied were encouraged to display the blue eagle, the emblem of the NRA, to demonstrate participation and generate consumer trust. Those businesses that did not comply were seen as unreliable and lacking in patriotism.
Under the auspices of the National Recovery Administration, more than 500 codes of practice have been developed for various industries. Critics were quick to insist that the NRA lacked the authority under the Recovery Act to properly enforce the codes, while others argued that antitrust exemptions would lead to monopolies. However, the workers did benefit from the act, as it gave them the power to collectively negotiate better terms and allowed them many concessions as part of the various codes.
In 1935, a challenge to the National Recovery Administration arose in the form of a Supreme Court case involving a poultry company accused of violating one of the codes. The Supreme Court ruled in favor of the company, concluding that the act was illegally legislating and violating the authority of state laws. Weakened by this decision, the NRA dissolved itself in early 1936, although many of its labor provisions would be validated by later legislation.
Protect your devices with Threat Protection by NordVPN
