The 1930s, when The Great Depression took place, were the years of unemployment and deflation. To help the people facing these problems, President Franklin D. Roosevelt created programs that were a part of New Deal. The programs focused on relief, recovery and reform; as known as “3 R’s”. One of the programs was the National Recovery Administration (NRA) that was created by National Industrial Recovery Act (NIRA). The National Recovery Administration worked with industry, labor and government in 1933 to create codes that would help set minimum wages and maximum hours in United States.
One of the main reasons for Great Depression to occur, was the crash of stock market, in October 29, 1929. Exactly two months after the crash, stockholders had lost more than $40 billion dollars. The second reason would be the failure of banks. Over 9,000 banks have failed, throughout 1930s. Any bank deposits were simply lost, and people did not have any savings. People from all social classes, stopped purchasing items, because they were scared of what might happen. This led to reduction in workforce. Many people have lost their jobs, …show more content…
The National Recovery Administration had some strict rules, that could not be broken, without consequences. If anybody goes against the rules, there are many ways to make it “hot for him” (“NRA has teeth”). One of the ways would be to make him virtually boycotted as well as he could be posted as a slacker. After that happens, he is required to secure his license before he continues to operate. If an individual refuses to listen to the government, and goes on operating without a license, he has to pay a fee of $500 and six months in prison. These penalties are applied each day, someone broke the law. “Every day is a separate offense - the intention being to make it impossible for such a rebel to continue in business” (“NRA has
One of the main reasons for Great Depression to occur, was the crash of stock market, in October 29, 1929. Exactly two months after the crash, stockholders had lost more than $40 billion dollars. The second reason would be the failure of banks. Over 9,000 banks have failed, throughout 1930s. Any bank deposits were simply lost, and people did not have any savings. People from all social classes, stopped purchasing items, because they were scared of what might happen. This led to reduction in workforce. Many people have lost their jobs, …show more content…
The National Recovery Administration had some strict rules, that could not be broken, without consequences. If anybody goes against the rules, there are many ways to make it “hot for him” (“NRA has teeth”). One of the ways would be to make him virtually boycotted as well as he could be posted as a slacker. After that happens, he is required to secure his license before he continues to operate. If an individual refuses to listen to the government, and goes on operating without a license, he has to pay a fee of $500 and six months in prison. These penalties are applied each day, someone broke the law. “Every day is a separate offense - the intention being to make it impossible for such a rebel to continue in business” (“NRA has