The Rise and Fall of the National Industrial Recovery Act

Despite trying to improve his business before starting his political career Franklin Roosevelt criticized businessmen from the beginning of his career. He said in 1911 "companies have to get out of politics". In the twenties, he confirmed what he believed the government should take control of the US economy from businessmen. By 1933, when NIRA became law, Roosevelt was a traitor to his class. And that was a firm belief in the United States.

The US minimum wage law was first introduced in the 1930s to cope with the Great Depression. This period was characterized by reduced production, declining prices, and a decline in employment. The State Industrial Recovery Act of 1933 (NIRA) tried to stop this vicious circle by encouraging the formation of a labor union agreement that sets a lower price limit and minimum wage. However, economists generally rely on the above analysis to claim that such laws lead to an increase in unemployment in the low-wage labor market. However, in recent years, a series of studies by David Card, Alan B. Krueger, Lawrence F. Katz et al. Show that rising small and medium wages does not adversely affect unemployment (and may even lead to a decline in the unemployment rate) not). .

The New Deal law has achieved a long-term struggle for the rights of workers' organizations. The national industrial renewal law in 1933 and the national labor relations law in 1935 promised federal protection of industrial workers' groups and demanded employers to conduct collective bargaining. By 1939 the state organized 25,000 workers. Based on this support, ASFL succeeded the campaign to create unemployment rate and worker compensation plan. In 1936, the National AFL (mainly a skilled trader) and the Industrial Organizing Committee (CIO, which was established in 1935 and renamed the Industrial Organization Conference in 1938) mainly form the national sector representing the unskilled industry did. The following year, when the association of CIO and ASFL broke up and the Arkansas Industry Association (AIC) was formed, the division was reproduced in Arkansas.