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National Industrial Recovery Act

National Industrial Recovery Act. By Evan Matos. National Industrial Recovery Act. The New Deal experiment in planning were the NIRA and the Agricultural Adjustment Act (AAA) NIRA was based on “destructive competition” had worsened industry’s economic woes. National Industrial Recovery Act.

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National Industrial Recovery Act

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  1. National Industrial Recovery Act By Evan Matos

  2. National Industrial Recovery Act • The New Deal experiment in planning were the NIRA and the Agricultural Adjustment Act (AAA) • NIRA was based on “destructive competition” had worsened industry’s economic woes

  3. National Industrial Recovery Act • NIRA authorized competing businesses to cooperate in crafting industry wide “codes” • With this logic , with wages and prices stabilized, consumers spending would increase, and rising consumer demand would allow industries to rehire workers

  4. National Industrial Recovery Act • Individual businesses could “Voluntarily” participate in this program administered by the NRA with one catch • This catch is, any business that is participating have to follow the “code” and could display the “blue eagle” which is the symbol of the NRA

  5. National Industrial Recovery Act • The government urged consumers to boycott any and all businesses that did not wave the “blue eagle” • In 1935 the supreme court put an end to the fragile,floundering system (NRA) • The supreme court found that the NRA extended federal powers past its bounds

  6. Agricultural Adjustment Act • The AAA, with a tighter federal control pf economic planning, had more enduring effect on the US • AAA offered subsidies to farmers who agreed to limit productionof specific crops

  7. Agricultural Adjustment Act • The subsidies, funded by taxing the processors of agricultural goods, meant to give farmers the same purchasing powers they had before WWI • In 1933, to reduce production already under way, the nation’s of farmers agreed to destroy 8.5 million piglets and to plow crops

  8. Agricultural Adjustment Act • Government subsidies were a huge disaster for tenant farmers and sharecroppers • AAA hoped that landlords would keep tenants even while cuttiong production were not fulfilled • in the south the number of sharecropper farmers dropped about ⅓ in 1930-1940

  9. Agricultural Adjustment Act • In 1936 the supreme court found that the AAA just like the NRA was unconstitutional • But was way to popular with the constituency, american farmers, to disappear

  10. Agricultural Adjustment Act • Legislation was rewritten to meet the supreme court’s objection, and the farmers subsidies continue into the twentieth century

  11. Relief Program • By 1935, $3 billion in federal funds went to poor relief • By January 1934 the civil work administration gave work to 4 million people, most of whom earned about $15 a week

  12. Relief Program • The civilian conservation corps (CCC) paid unmarried young men $1 a day to do hard outdoor labor • By 1942 the CCC had employed 2.5 million young men, including 80,000 Native americans who worked on western Indian reservation

  13. Relief Program • Public Works Administration (PWA), created Title II of the NIRA, appropriated $3.3 billion for public works in 1933 • In just over 3 months Roosevelt had delivered fifteen messages to congress and they passed fifteen significant laws, the us has rebounded from a near collapse

  14. Relief Program • Through the remainder of 1933 and the spring and summer of 1934, more New Deal bills became law • When this program was implemented unemployment fell steadily from 13 million to 9 million in 1936

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