National Industrial Recovery Act

National Industrial Recovery Act
U.S. Government · Public domain · source
Shorttitle	National Industrial Recovery Act
Longtitle	An Act to encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes
Enactedby	72nd United States Congress
Citations	Public Law 73-67
Signeddate	June 16, 1933
Signedby	Franklin D. Roosevelt

National Industrial Recovery Act was a significant piece of legislation passed by the 72nd United States Congress and signed into law by Franklin D. Roosevelt on June 16, 1933, as part of his New Deal program, which aimed to alleviate the suffering of the Great Depression by stimulating industry and providing jobs, with the involvement of key figures such as Hugh S. Johnson, Frances Perkins, and Donald Richberg. The Act was designed to promote economic recovery, reform, and relief, with the support of organizations like the National Recovery Administration and the Federal Trade Commission. It was influenced by the ideas of John Maynard Keynes, Thorstein Veblen, and other prominent economists, including Milton Friedman and John Kenneth Galbraith, who were associated with institutions like the University of Cambridge and the University of Chicago. The Act's provisions were also shaped by the experiences of other countries, such as Germany under Adolf Hitler and the Soviet Union under Joseph Stalin, which had implemented similar policies.

Introduction

The National Industrial Recovery Act was introduced to address the severe economic crisis of the Great Depression, which had led to widespread unemployment, poverty, and social unrest, as documented by writers like John Steinbeck and Ernest Hemingway. The Act's main goal was to stabilize the economy, increase employment, and improve working conditions, with the guidance of experts like John Commons and Wesley Clair Mitchell, who were affiliated with the University of Wisconsin–Madison and the National Bureau of Economic Research. It was also intended to promote fair competition, prevent monopolies, and provide relief to farmers and workers, as advocated by organizations like the American Federation of Labor and the National Farmers' Union. The Act's introduction was influenced by the policies of other countries, such as Canada under R. B. Bennett and Australia under Joseph Cook, which had implemented similar measures to address the economic crisis.

History

The National Industrial Recovery Act was the result of a long process of debate and negotiation between the Democratic Party and the Republican Party, with key figures like Herbert Hoover and Al Smith playing important roles. The Act was influenced by the National Industrial Recovery Act of 1932, which had been introduced by Herbert Hoover but failed to pass, and the Federal Emergency Relief Administration, which had been established by Franklin D. Roosevelt in 1933. The Act's history is also closely tied to the development of the New Deal program, which included other significant legislation like the Civilian Conservation Corps and the Works Progress Administration, established by Franklin D. Roosevelt with the support of advisors like Harry Hopkins and Henry A. Wallace. The Act's passage was also influenced by the experiences of other countries, such as France under Édouard Daladier and Italy under Benito Mussolini, which had implemented similar policies to address the economic crisis.

Provisions

The National Industrial Recovery Act had several key provisions, including the establishment of the National Recovery Administration, which was responsible for implementing the Act's policies, with the guidance of experts like Charles F. Roos and Gardiner C. Means, who were affiliated with the National Bureau of Economic Research and the Brookings Institution. The Act also set minimum wages and working conditions, prohibited child labor, and provided for the establishment of codes of fair competition, which were designed to prevent monopolies and promote fair competition, with the support of organizations like the Federal Trade Commission and the National Association of Manufacturers. The Act's provisions were influenced by the ideas of economists like John Maynard Keynes and Thorstein Veblen, who were associated with institutions like the University of Cambridge and the University of Chicago. The Act also provided for the construction of public works, such as roads, bridges, and buildings, with the involvement of agencies like the Public Works Administration and the Civilian Conservation Corps, established by Franklin D. Roosevelt with the support of advisors like Harold Ickes and Henry A. Wallace.

Implementation

The implementation of the National Industrial Recovery Act was a complex process that involved the coordination of multiple agencies and organizations, including the National Recovery Administration, the Federal Emergency Relief Administration, and the Public Works Administration. The Act's implementation was also influenced by the experiences of other countries, such as Germany under Adolf Hitler and the Soviet Union under Joseph Stalin, which had implemented similar policies. The Act's provisions were enforced by agencies like the National Labor Relations Board and the Federal Trade Commission, with the guidance of experts like William Leiserson and Morris L. Cooke, who were affiliated with the National Bureau of Economic Research and the University of Pennsylvania. The Act's implementation was also shaped by the policies of other countries, such as Canada under R. B. Bennett and Australia under Joseph Cook, which had implemented similar measures to address the economic crisis.

Reception_and_Criticism

The National Industrial Recovery Act received both praise and criticism from various groups, including business leaders, labor unions, and farmers, with organizations like the National Association of Manufacturers and the American Federation of Labor playing important roles. Some critics, like Herbert Hoover and Calvin Coolidge, argued that the Act was too radical and would lead to socialism, while others, like Norman Thomas and Upton Sinclair, argued that it did not go far enough in addressing the economic crisis. The Act's reception was also influenced by the experiences of other countries, such as France under Édouard Daladier and Italy under Benito Mussolini, which had implemented similar policies to address the economic crisis. The Act's criticism was also shaped by the ideas of economists like Milton Friedman and Friedrich Hayek, who were associated with institutions like the University of Chicago and the London School of Economics.

Legacy

The National Industrial Recovery Act had a significant impact on the development of the New Deal program and the United States economy, with key figures like Franklin D. Roosevelt and Harry Hopkins playing important roles. The Act's legacy can be seen in the establishment of agencies like the National Labor Relations Board and the Federal Trade Commission, which continue to play important roles in regulating the economy, with the guidance of experts like William Leiserson and Morris L. Cooke, who were affiliated with the National Bureau of Economic Research and the University of Pennsylvania. The Act's legacy is also closely tied to the development of the Welfare State and the Mixed Economy, with institutions like the Social Security Administration and the Federal Reserve System playing important roles. The Act's influence can also be seen in the policies of other countries, such as Canada under Pierre Trudeau and Australia under Gough Whitlam, which have implemented similar measures to address economic crises. Category:United States federal legislation