National Industrial Recovery Act, 1933

(NIRA)

   One of the cornerstones of the New Deal in its “First Hundred Days,” NIRA was intended to bring about industrial recovery by establishing codes of fair competition that would provide manufacturers with a decent price for their goods and provide workers with a fair wage. The act suspended antitrust legislation to allow industries within the same area to agree on voluntary codes, setting prices and wages. Section 7 guaranteed workers the right to organize. Some 2 million employers agreed on approximately 500 codes. Almost 22 million workers came under these agreements.

   Title II of the act established an emergency Public Works Administration with $3.3 billion to provide work relief through the construction of dams, public buildings, roads, airports, and other projects. This was to be partially funded by excess profits taxes authorized under Title III. A National Recovery Administration (NRA), under Hugh Johnson, was established to oversee the operation of the act. The codes were approved by the NRA with the famous Blue Eagle symbol. In 1935, the Supreme Court ruled NIRA unconstitutional in Schechter Poultry Corp. v. United States. It was not replaced and has largely been judged a failure by historians.