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This NRA National Recovery Administration blue eagle poster was displayed by businesses during the New Deal to show support for the government program. Its goal was to administer provisions of Title I of the National Industrial Recovery Act NIRA of , specifically, to develop and administer an industrial code system that would exert controls over industrial pricing, production, trade practices, and labor relations, thereby promoting economic recovery during the Great Depression.
On May 27, , the U. Supreme Court, in Schechter v. United States , declaring NIRA's code system an unconstitutional delegation of legislative power and an unconstitutional attempt by the Federal Government to regulate interstate commerce. The NRA was reorganized on June 15, , to fulfill a new role as promoter of industrial cooperation, and to enable it to produce a series of economic studies. And even though the NIRA encouraged the unionization of workers to seek better conditions, the efforts to form unions became disorganized.
The NRA as an agency had the power to push for voluntary agreements about work conditions and fixed prices, drawing up more than fair practice codes for industries.
In , one of these codes established competitive rules for the live poultry industry in New York City. The brothers lost their first appeal but pursued the case to the Supreme Court, where the Justices ruled in favor of the Schechters and invalidated the part of the NIRA that allowed the executive branch to establish codes to regulate industries.
Some economists have estimated that the NRA boosted the cost of doing business by an average of 40 percent - not something a depressed economy needed for recovery. The economic impact of the NRA was immediate and powerful. In the five months leading up to the act's passage, signs of recovery were evident: factory employment and payrolls had increased by 23 and 35 percent, respectively.
Then came the NRA, shortening hours of work, raising wages arbitrarily and imposing other new costs on enterprise. In the six months after the law took effect, industrial production dropped 25 percent. Benjamin M. Anderson writes, "NRA was not a revival measure.
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