The National Recovery Administration (NRA), established in
1933 with the National Industrial Recovery Act (NIRA), attempted
to end cut-throat competition by setting codes of fair
competitive practice to generate more jobs and thus more buying.
Although welcomed initially, the NRA was soon criticized for
over-regulation and was unable to achieve industrial recovery.
It was declared unconstitutional in 1935.
The NIRA had guaranteed to labor the right of collective
bargaining through labor unions representing individual workers,
but the NRA had failed to overcome strong business opposition to
independent unionism. After its demise in 1935, Congress passed
the National Labor Relations Act, which restated that guarantee
and prohibited employers from unfairly interfering with union
activities. It also created the National Labor Relations Board
to supervise collective bargaining, administer elections, and
ensure workers the right to choose the organization that should
represent them in dealing with employers.
The great progress made in labor organization brought working
people a growing sense of common interests, and labor's power
increased not only in industry but also in politics. Roosevelt's
Democratic Party benefited enormously from these developments.
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