National Industrial Recovery Act
By Collin Matthews
What will the National Industrial Recovery Act accomplish?
This act is an attempt to regulate industry so that prices will be raised to fix the deflation caused by the Great Depression. The NIRA will also created the Public Works Administration. The NIRA will raise prices of goods produced and will fix the problems caused by deflation. Prices will go back to normal and the people producing goods will make more money out from selling their goods. This will help people who lost jobs in the depression and also help business owners who lost a lot of money and couldn't turn a profit during the depression.
What was actually accomplished by the National Industrial Recovery Act?
The National Industrial Recovery Act improved working conditions, such as limiting the length of the work day, addressing the rights of workers' unions, and setting codes of industrial competition. The NIRA also raised prices and caused an end to the deflation, but after a year the public support of the act went down. People began to disapprove of it and it was widely disliked. In 1935, the Supreme Court case Schechter Poultry Corporation v. United States, the act was declared unconstitutional and was nullified.
Who is this program going to help?
This program is going to help owners of businesses and the people who work for them. Prices will rise and the business will make more money, allowing the workers to receive higher wages and the owner to make more profits. It will help people who were laid off of factory jobs because businesses will now have enough money to hire more workers and these workers will be satisfied with their jobs because they are making more money.
Does this program follow relief, recovery, or reform?
The NIRA follows recovery. The act was passed to fix the deflation problem that plagued American businesses and led to people losing jobs. It helps businesses and people that worked for these businesses recover from job and profit loss caused by the hard times and tough economic conditions of the Great Depression.