What was the nra during the depression

On-going macroeconomic analysis suggests that the general public interest may have been poorly served by the experiment of the NRA. Like many macroeconomic theories, the validity of the underconsumption scenario that was put forth in support of the program depended on the strength and timing of the operation of its various mechanisms.

Increasingly it appears that the NRA set off inflationary forces thought by some to be desirable at the time, but that in fact had depressing effects on demand for labor and on output.

The strength of any mitigating effects on aggregate demand remains to be established. Homan, L. Lorwin, G. Terborgh, C. Dearing, L. Cole and Lee E. And, on the same date, Donald Richberg issued a supplementary statement which said that the provisions of the anti-trust laws were still in effect and that the NRA would not tolerate monopolistic practices.

They wished that the codes were not as strict as I wanted them to be. We tune policy until the squeals are the same pitch from both sides. Brand dates the start of the compliance crisis much earlier, in the fall of Brand, op. See also Peter H. Reprinted in Roos, op. Citation: Alexander, Barbara. Net Encyclopedia, edited by Robert Whaples.

August 14, Please read our Copyright Information page for important copyright information. Send email to admin eh. The NRA began to work with businesses to establish the mandated codes for fair competition, which were to be exempt from the antitrust laws. Cooperation to this extent among competing businesses would ordinarily be prohibited. Industrial groups first submitted proposed codes to the president for his approval.

The president was to approve the codes only if the submitting organization did not restrict membership and was representative of the industry and if the codes themselves promoted the policy of the act. Codes were to neither foster monopolies nor discriminate against small businesses.

Once approved, the codes became legally enforceable standards for that trade or industry. Under section 3 c of the act, federal district courts had jurisdiction over code violations, and U.

Under Section 7 a , industry codes were required to include provisions for the protection of labor. Section 7 a also provided that an employee must not be required to join a company union or be prevented from joining any other union as a condition of employment. Section 7 a was to have such far-reaching consequences that some labor historians have called it the Magna Charta of the labor movement.

Nationwide, union membership grew dramatically. The Amalgamated Clothing Workers, for example, doubled its membership from 60, to , between early and mid Under the supervision of the NRA, several hundred industry codes were rapidly enacted, but public support soon diminished.

By the end of the summer, the nation's ten largest industries had been won over, as well as hundreds of smaller businesses. All across the land businesses displayed the "Blue Eagle," the insignia of the NRA, in their windows. Thousands participated in public rallies and spectacular torchlight parades.

The NRA's success was short-lived. Johnson proved to be an overzealous leader who alienated many businesspeople.