NIRA ; The NATIONAL INDUSTRIAL RECOVERY ACT
Image : For New Deal. Digital image. N.p., n.d. Web. <http://www.socialwelfarehistory.com/wp-content/uploads/2013/06/images-2.jpg>.
What was nira?
National Industrial Recovery Act, U.S. labour legislation (1933) that was one of several measures passed by Congress and supported by Pres. Franklin D. Roosevelt in an effort to help the nation recover from the Great Depression. It suspended antitrust laws and supported an alliance of industries.Under the NIRA, companies were required to write industrywide codes of fair competition that effectively fixed wages and prices, established production quotas, and placed restrictions on the entry of other companies into the alliances. These codes were a form of industry self-regulation and represented an attempt to regulate and plan the entire economy to promote stable growth and prevent another depression.
Definition: "NIRA." (n.d.): n. pag. Web. <http://www.britannica.com/EBchecked/topic/404942/National-Industrial-Recovery-Act>.
Watch video for rise and fall of nira:
Youtube video: NIRA: Rise and Fall. Youtube, n.d. Web. <https://www.youtube.com/watch?v=_xjosM-KEvk>.
why was nira significant?
The major significance of the NIRA was labor policy. The Roosevelt Administration believed that nominal wage cuts were exacerbating the downturn by decreasing aggregate demand for goods and services. Thus it was felt that higher hourly wage rates could provide a remedy to Depression. Furthermore, the Roosevelt Administration employed a policy that today is known as “work-sharing”—the idea that reducing the hourly workweek for individual workers would allow existing employment opportunities to be spread across a larger number of workers.The NIRA can be seen as a microcosm of the entire New Deal. Some of the policies that the Roosevelt Administration enacted (work-sharing) were successful in brining relief, recovery, and reform while others ( increased hourly wage rates) worked.
Significance : "NIRA Significance." (n.d.): n. pag. Analysis Online. Web. <http://www.analysisonline.org/site/aoarticle_display.asp?sec_id=140002434&news_id=140003556&issue_id=8>.