National Recovery Administration

The National Recovery Administration (NRA) was created by the U.S. Congress in June 1933 under the leadership of President Franklin D. Roosevelt as part of his New Deal program. It was designed to bring about economic recovery during the Great Depression by establishing codes of fair practices for various industries and promoting higher wages, shorter working hours, and increased production. Though the NRA existed for only two years, it had a significant impact on American industry and labor. The NRA was implemented as part of the National Industrial Recovery Act (NIRA) and aimed to improve workers' rights, increase wages, and establish codes of fair practices in industry. The codes established minimum wages and maximum working hours, banned child labor, and prohibited discrimination against workers who belonged to labor unions. The codes were created by business leaders in each industry to promote competition and outlaw unfair practices. The NRA was led by General Hugh Johnson, a decorated veteran of World War I who had served as the head of the U.S. Army's War Plans Division during the war. He was appointed to lead the NRA in the hopes that his military background would help bring discipline and order to American industry. The NRA was divided into two main divisions: the Industrial Advisory Board and the Compliance Division. The Industrial Advisory Board was responsible for creating the codes of fair practices for each industry, while the Compliance Division was responsible for enforcing the codes and ensuring that businesses were following them. The NRA was met with mixed reactions. While it was seen as a necessary step to improving the economy, many business leaders were reluctant to participate in the program. They felt that the codes were too restrictive and would hurt their profits. Some industries also felt that the codes were unfair and gave an advantage to their competitors. Despite these criticisms, the NRA was able to achieve some significant successes. Wages increased by an average of 40% in industries that participated in the program, and many businesses were able to increase production and profits. The codes of fair practices also helped to stabilize prices and promote competition. However, the NRA's success was short-lived. The Supreme Court ruled that the NIRA was unconstitutional in 1935, and the NRA was disbanded later that year. Many of the codes of fair practices were abandoned, and labor unions lost some of the protections they had gained under the program. Overall, the National Recovery Administration was an important program that helped to improve the economic conditions in the United States during the Great Depression. While it had its flaws and was ultimately unsuccessful in the long term, it paved the way for future programs that would continue to promote workers' rights and fairness in industry. Its legacy continues to be felt in American society today, as workers enjoy protections that were established during the era of the NRA.