final study 147c

final study 147c - NationalRecoveryAdministration(NRA)...

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National Recovery Administration (NRA) First New Deal NIRA? 23:53 Intro (why assoc fail   great depression) NIRA (three plans as one) = use assoc, expand participatns, enforce trade  agreements Titles  1 – NIRA goal – cartelize – Indus fix price – approve – suspend anti trust 2 – PWA/NLB/NRA Example – textile Limits  Imp Associationalism requires moral/patriotic climat e of war or reasonably  prosperous times to work well –When economy sours and markets dry up Individual firms face incentives to ignore industry standards  and govt  exhortations –Try to maintain a stable share of a declining market by any means possible Great Depression –Excess capacity and  underconsumption –• Drives prices through the floor –Result : wage and  price deflation, unemployment, stagnant private  investment, bankruptcy
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•The National Industrial Recovery Act (1933) –The centerpiece of  Roosevelt’s New Deal for two years o Competing Strategies The Swope plan      Gov enforced pooling agreements The Tugwell plan     Gov makes standards use trade associations to spread vice  versa ) The 30 Hours Bill     Make illegal to hire workers for more than 30 hrs #1   uses 1920 associational framework o #2       Expand the list of participants in trade negotiations process     o    Not only business representatives, but     o   Organized labor     o   Government reps     o #3  Use the  coercive power of federal government to enforce trade  agreements o –Another  clear break with voluntarist  character of 1920s  associationalism •NIRA legislation:  2 major parts (titles) •Title I
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o –Announces general goal:  organize industry   fix prices   cartelized   by government enforcement o •To facilitate  cooperative   action  within industrial trade groups o stabilize   prices o Once govt approval secured, suspend antitrust laws for that  industry o Title II o Creation of Public Works Administration o  ( countercyclical govt spending )   o –•Financed through govt borrowing (break with 1920s) o #1  Labor provisions o Section 7A  (NIRA):  Fed govt recognizes worker right to •Organize into unions Bargain collectively  with employers maximum hours and minimum wages –Section 7A also creates a National Labor Board •Monitor collective bargaining  arrangements and  unfair labor  practices –More of a  mediation board •First step on road to more powerful National Labor Relations  Board (1935)
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•#2  NIRA actively  involves the directive and coercive powers of the 
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final study 147c - NationalRecoveryAdministration(NRA)...

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