Impact of the National Industrial Recovery Act

Medium Period 7: 1890–1945 New Deal

In the context of the New Deal and its various programs implemented to counter the Great Depression, the National Industrial Recovery Act (NIRA) was significant for several reasons. Enacted in 1933, NIRA aimed to stimulate industrial production and improve labor conditions. Critically, it sought to promote fair competition among industries and increase workers' rights, including the right to unionize. The act also created the Public Works Administration (PWA), which funded large-scale public works projects. Yet, while NIRA had ambitious goals, it faced challenges and controversies that raised questions about its effectiveness and constitutionality.

Which of the following statements best describes one of the main impacts of the National Industrial Recovery Act?

It led to an immediate and significant reduction in unemployment rates across the United States.

It inspired the establishment of new labor standards, including the minimum wage and maximum working hours.

It was declared unconstitutional by the Supreme Court, highlighting tensions between federal authority and state rights.

It resulted in the successful nationalization of major industries, permanently reshaping private enterprise in America.

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