The National Recovery Act (NIRA)

777 Words2 Pages

Between November 1932 and March 1933, the Great Depression had gotten worse as more banks closed, vagrants walked the streets, and vigilantes incited riots. During his inaugural speech on March 4, 1933, President Roosevelt attempted to reassure the country about its future. He declared a four-day national bank holiday and calling Congress in for a special session to deal with the worsening conditions. Out these two events, a plan known as the New Deal was introduced with the intention to finally end the depression. The expectations of the New Deal were to regulate the economy, provide for a national recovery, and create a social safety net for all Americans (Schultz, 2014). These laws and programs were designed to address the political, economic, …show more content…

This act developed programs to regulate industries, create labor rights, as well as improve working conditions. To help with these regulations, labor unions were given the right to organize and they began to meet with business and government officials to set workplace standards and wages levels. American industries not only established a forty-hour workweek but banned child labor and implemented a minimum work wage. The National Recovery Act (NRA) enforced fair-trade rules while encouraging companies and their workers to meet and agree on prices and …show more content…

The federal government began to manage, direct, and control significant parts of the American economy. The first major reform act was the Agricultural Adjustment Act (AAA), which offered farmers cash subsidiaries to not grow crops or plow up what they already had due to excess supplies. This was based on the theory that if there was less supply, prices would increase. The Emergency Farm Mortgage Act was also developed to refinance farm loans and reduce the number of farm repossessions. In May of 1933, Congress created the Tennessee Valley Authority (TVA), giving the government the authority to build a series of dams on the Tennessee River. This not only improved river navigation but also provided electricity to many poor and isolated areas across seven states. In 1933, Congress also passed the Federal Securities Act regulating the stock market and eliminating "insider trading" through prosecution. The Glass-Steagall Banking Act regulated the size of banks and developed the FDIC program to guarantee individual deposits up to $5,000 reassuring Americans they could once again put their money in

Open Document