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| | for the National Rife Association, see [[NRA]] | | for the National Rife Association, see [[NRA]] |
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| − | The '''National Recovery Administration''', or '''NRA''', was a major [[New Deal]] agency that lasted 1933-35, designed to speed recovery from the [[Great Depression]]. Headed by [[General Hugh Johnson]], the NRA was created by the National Industrial Recovery Act, along with the PWA. | + | The '''National Recovery Administration''', or '''NRA''', was a major [[New Deal]] agency that lasted 1933-35, designed to speed recovery from the [[Great Depression]]. Headed by [[General Hugh Johnson]], the NRA was created by the National Industrial Recovery Act, along with the [[PWA]]. |
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| | + | ==Background== |
| | + | The NRA was designed with the objective to restore the economic health of American business, modeled on the progressive ideals of the [[World War I]]-era [[War Industries Board]].<ref>[https://www.google.com/books/edition/The_Great_Depression_and_the_New_Deal_Ke/tfskDwAAQBAJ?hl=en&pg=PA108 The Great Depression and the New Deal: Key Themes and Documents]</ref> Johnson, who served as the head of the NRA, also served in the WIB during World War I.<ref>[https://www.google.com/books/edition/Encyclopedia_of_American_Business_Histor/5dGig0fYlj8C?hl=en&gbpv=1&pg=PA298 Encyclopedia of American Business History]</ref> |
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| | + | It had four objectives: to spread work evenly among people; to distribute wages, thereby increasing purchasing power; To stop unfair trade practices and limit cutthroat competition; and to eliminate child labor. The NRA was in operation about two years. The business community was initially highly supportive, but by 1934 became increasingly frustrated with the red tape involved. The NRA was shut down in 1935, and no efforts were made to revive it. Economic historians generally agree that it was a poor solution to the economic crises. |
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| − | The NRA was designed to restore the economic health of American business. It had four objectives: to spread work evenly among people; to distribute wages, thereby increasing purchasing power; To stop unfair trade practices and limit cutthroat competition; and to eliminate child labor. The NRA was in operation about two years. The business community was initially highly supportive, but by 1934 became increasingly frustrated with the red tape involved. The NRA was shut down in 1935, and no efforts were made to revive it. Economic historians generally agree that it was a poor solution to the economic crises.
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| | ==New Deal== | | ==New Deal== |
| | The '''National Recovery Administration''' ('''NRA''') was a key part of the First New Deal in 1933-35, until it was abolished by the Supreme Court. The goal was to eliminate cut-throat competition by bringing industry, labor and government together to create codes of fair practices and set prices. The NRA was created (by the [[National Industrial Recovery Act]]) under the general guidance of President [[Franklin D. Roosevelt]] and his top advisors. It allowed industries to create "codes of fair competition," which were intended to reduce destructive competition and to help workers by setting minimum wages and maximum weekly hours. Most economic historians consider the NRA to be a resounding failure with very little positive economic success. | | The '''National Recovery Administration''' ('''NRA''') was a key part of the First New Deal in 1933-35, until it was abolished by the Supreme Court. The goal was to eliminate cut-throat competition by bringing industry, labor and government together to create codes of fair practices and set prices. The NRA was created (by the [[National Industrial Recovery Act]]) under the general guidance of President [[Franklin D. Roosevelt]] and his top advisors. It allowed industries to create "codes of fair competition," which were intended to reduce destructive competition and to help workers by setting minimum wages and maximum weekly hours. Most economic historians consider the NRA to be a resounding failure with very little positive economic success. |
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| | ==Codes== | | ==Codes== |
| − | The NRA quickly created a series of fair competition codes, by bringing together leaders from each industry who in turn set the codes for that industry. The NRA spent the first months of its life trying to get both support from government and from the people for these codes. After an initial wave of public support, NRA bogged down. About 23,000,000 people worked under the NRA fair code. However, violations of codes became common and attempts were made to use the courts to enforce the NRA. The NRA included a multitude of regulations imposing the pricing and production standards for all sorts of goods and services. | + | The NRA quickly created a series of fair competition codes, by bringing together leaders from each industry who in turn set the codes for that industry. The NRA spent the first months of its life trying to get both support from government and from the people for these codes. After an initial wave of public support, NRA bogged down. About 23,000,000 people worked under the NRA fair code. However, violations of codes became common and attempts were made to use the courts to enforce the NRA. The NRA included a multitude of regulations imposing the pricing and production standards for all sorts of goods and services. |
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| | ===Ford=== | | ===Ford=== |
| | There was something almost awesome, and perhaps typically American, in automaker [[Henry Ford]]'s defiance of the NRA. Ford insisted his giant company was adhering to the law and had, in fact, anticipated many of the code provisions regarding minimum wages, maximum hours, and working conditions. Critics focused their attack upon the company's labor practices, which clearly foreshadowed a coming strife (the autoworkers union did not yet exist), but no case was brought to court and Ford's fiercely individualistic attitude was never successfully challenged by the New Dealers, who opposed individualism. The larger issue was not whether Ford did or did not comply, but rather what, in this period of profound social change, was to be the "fundamental American idea."<ref>Fine (1958)</ref> | | There was something almost awesome, and perhaps typically American, in automaker [[Henry Ford]]'s defiance of the NRA. Ford insisted his giant company was adhering to the law and had, in fact, anticipated many of the code provisions regarding minimum wages, maximum hours, and working conditions. Critics focused their attack upon the company's labor practices, which clearly foreshadowed a coming strife (the autoworkers union did not yet exist), but no case was brought to court and Ford's fiercely individualistic attitude was never successfully challenged by the New Dealers, who opposed individualism. The larger issue was not whether Ford did or did not comply, but rather what, in this period of profound social change, was to be the "fundamental American idea."<ref>Fine (1958)</ref> |