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  1. Home
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  3. May
  4. 27
  5. National Industrial Recovery Act

Events on May 27 in history

National Industrial Recovery Act
1935May, 27

New Deal: The Supreme Court of the United States declares the National Industrial Recovery Act to be unconstitutional in A.L.A. Schechter Poultry Corp. v. United States, (295 U.S. 495).

The National Industrial Recovery Act of 1933 (NIRA) was a US labor law and consumer law passed by the 73rd US Congress to authorize the President to regulate industry for fair wages and prices that would stimulate economic recovery. It also established a national public works program known as the Public Works Administration (PWA) (not to be confused with the Works Progress Administration (WPA) of 1935). The National Recovery Administration (NRA) portion was widely hailed in 1933, but by 1934 business' opinion of the act had soured. By March 1934 the NRA was engaged chiefly in drawing up these industrial codes for all industries to adopt." However, the NIRA was declared unconstitutional by the Supreme Court in 1935 and not replaced.The legislation was enacted in June 1933 during the Great Depression in the United States as part of President Franklin D. Roosevelt's New Deal legislative program. Section 7(a) of the bill, which protected collective bargaining rights for unions, proved contentious (especially in the Senate), but both chambers eventually passed the legislation. President Roosevelt signed the bill into law on June 16, 1933. The Act had two main sections (or "titles"). Title I was devoted to industrial recovery, authorizing the promulgation of industrial codes of fair competition, guaranteed trade union rights, permitted the regulation of working standards, and regulated the price of certain refined petroleum products and their transportation. Title II established the Public Works Administration, outlined the projects and funding opportunities it could engage in. Title II also provided funding for the Act.

The Act was implemented by the NRA and the Public Works Administration (PWA). Very large numbers of regulations were generated under the authority granted to the NRA by the Act, which led to a significant loss of political support for Roosevelt and the New Deal. The NIRA was set to expire in June 1935, but in a major constitutional ruling the U.S. Supreme Court held Title I of the Act unconstitutional on May 27, 1935, in Schechter Poultry Corp. v. United States, 295 U.S. 495 (1935). The National Industrial Recovery Act is widely considered a policy failure, both in the 1930s and by historians today. Disputes over the reasons for this failure continue. Among the suggested causes are that the Act promoted economically harmful monopolies, that the Act lacked critical support from the business community, and that it was poorly administered. The Act encouraged union organizing, which led to significant labor unrest. The NIRA had no mechanisms for handling these problems, which led Congress to pass the National Labor Relations Act in 1935. The Act was also a major force behind a major modification of the law criminalizing making false statements.

National Industrial Recovery ActNational Industrial Recovery Act
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate and largely discretionary appellate jurisdiction over all federal and state court cases that involve a point of federal law, and original jurisdiction over a narrow range of cases, specifically "all Cases affecting Ambassadors, other public Ministers and Consuls, and those in which a State shall be Party." The Court holds the power of judicial review, the ability to invalidate a statute for violating a provision of the Constitution. It is also able to strike down presidential directives for violating either the Constitution or statutory law. However, it may act only within the context of a case in an area of law over which it has jurisdiction. The Court may decide cases having political overtones but has ruled that it does not have power to decide non-justiciable political questions.

Established by Article Three of the United States Constitution, the composition and procedures of the Supreme Court were initially established by the 1st Congress through the Judiciary Act of 1789. As later set by the Judiciary Act of 1869, the Court consists of the chief justice of the United States and eight associate justices. Each justice has lifetime tenure, meaning they remain on the Court until they die, retire, resign, or are removed from office. When a vacancy occurs, the president, with the advice and consent of the Senate, appoints a new justice. Each justice has a single vote in deciding the cases argued before the Court. When in majority, the chief justice decides who writes the opinion of the court; otherwise, the most senior justice in the majority assigns the task of writing the opinion.

The Court meets in the Supreme Court Building in Washington, D.C. Its law enforcement arm is the Supreme Court Police.

References

  • Supreme Court of the United States
  • National Industrial Recovery Act
  • A.L.A. Schechter Poultry Corp. v. United States

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