The National Recovery Administration, abbreviated NRA, was one of several government agencies introduced as part of President Franklin D. Roosevelt’s New Deal. The goal of the agency was to institute codes that would enforce fair business practices and encourage economic growth (Buchholz). The short-lived organization is largely considered a failure, creating more problems than it solved due to mismanagement, corruption, and infighting (The National Recovery Administration).
The NRA began with the introduction of the National Industrial Recovery Act in 1933. The purpose of the Act was to promote cooperation between businesses while also protecting employees and consumers. The NIRA overturned several existing antitrust laws while also making it illegal for employers to fire or refuse to hire people because of union membership. Companies were also required to create and comply with “codes of fair competition.” These codes would set minimum and maximum prices, the latter to prevent larger corporations from underselling smaller ones, as well as set a minimum wage for employees, and standards of quality for goods. While most of these actions were of little immediate benefit, it was hoped that such steps would lead to steady economic growth and prevent later depressions. The National Recovery Administration was created as a means to enforce the NIRA (Buchholz). …show more content…
Roosevelt appointed General Hugh Johnson to lead the Association. The organization saw some early successes, convincing over 500 companies (The National Recovery Administration) to adopt over 760 codes affecting over 22 million workers. Businesses who complied with the code were permitted to display the NRA’s insignia, a stylized blue eagle, encouraging consumers to favor them over companies that resisted the reforms (National Recovery
The NRA began with the introduction of the National Industrial Recovery Act in 1933. The purpose of the Act was to promote cooperation between businesses while also protecting employees and consumers. The NIRA overturned several existing antitrust laws while also making it illegal for employers to fire or refuse to hire people because of union membership. Companies were also required to create and comply with “codes of fair competition.” These codes would set minimum and maximum prices, the latter to prevent larger corporations from underselling smaller ones, as well as set a minimum wage for employees, and standards of quality for goods. While most of these actions were of little immediate benefit, it was hoped that such steps would lead to steady economic growth and prevent later depressions. The National Recovery Administration was created as a means to enforce the NIRA (Buchholz). …show more content…
Roosevelt appointed General Hugh Johnson to lead the Association. The organization saw some early successes, convincing over 500 companies (The National Recovery Administration) to adopt over 760 codes affecting over 22 million workers. Businesses who complied with the code were permitted to display the NRA’s insignia, a stylized blue eagle, encouraging consumers to favor them over companies that resisted the reforms (National Recovery