Overproduction and the National Industrial Recovery Act (NIRA) Free Essay, Term Paper and Book Report
In the 1920s overproduction and lack of consumer demand caused the depression. More goods were being produced than a population could consume. As a result, factory owners didnt need their workers because their products were sitting on the shelves. In the middle of the Great Depression, President Franklin Roosevelt worked with the Democratic Congress to pass numerous economic reform bills, known as the New Deal. The National Industrial Recovery Act of 1833 was apart of this New Deal, and it was intended to control production and help government to aid business.
Congress declared the National Industrial Recovery Act, also known as the NIRA, in June 1933. It was one of the ways President Franklin D. Roosevelt tried to fix the economic issues of the Great Depression. The NIRA supported the alliance of industries. Antitrust laws were suspended and companies were required to write "codes of fair competition" that made set prices, wages, and restrictions on the entrance of other companies into the alliance.
The act also allowed for industries to regulate themselves. For the......
Word Count: 847
Page Count: 3.3 (250 words a page / double spaced)
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