Home > West's Encyclopedia of American Law > National Recovery Administration

In 1933, the United States was in the throes of a severe economic depression. Unemployment was widespread, and the economic system was in chaos. An emergency measure was needed to alleviate the situation, and the members of President FRANKLIN DELANO ROOSEVELT's NEW DEAL administration attempted to ease the problem with the passage of the NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) (48 Stat. 195).

The chief provision of the act was the establishment of business codes to be enforced nationally. The codes included rules regarding fair competition, discontinuance of antitrust regulations for a two-year period, voluntary participation in unions, and establishment of shorter hours and better wages.

In June 1933, the National Recovery Administration (NRA) was created to supervise the...