The National Recovery Administration (NRA) was a key agency established during the early years of Franklin D. Roosevelt’s New Deal in the 1930s. Its primary goal was to combat the Great Depression by promoting industrial recovery through cooperation between businesses and the government. The agency sought to stabilize prices, wages, and working conditions by establishing codes of fair competition in various industries. These codes aimed to eliminate destructive competition and overproduction, fostering a more stable economic environment.
The significance of this agency lies in its attempt to address the economic crisis through direct government intervention in the economy. It represented a departure from laissez-faire economics, reflecting a belief that government could and should play a role in regulating industry for the public good. While controversial and ultimately deemed unconstitutional by the Supreme Court in 1935, its establishment demonstrates the Roosevelt administration’s commitment to experimentation and proactive measures to alleviate the economic hardships of the era. Its efforts also contributed to the growth of organized labor and set precedents for later government regulation of industry.
