National Recovery Administration (NRA)

Definition

The NRA was established by President Roosevelt in 1933 as part of the New Deal. It was designed to bring industries together to create fair practices and codes, including setting prices and wages.

Analogy

Think of NRA as a referee in a sports game, ensuring all teams (industries) play by the same rules, making the game (market) fair for everyone.

Related terms

Fair Labor Standards Act (FLSA): A federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

Collective Bargaining: The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, etc.

Wagner Act: A 1935 law that guarantees basic rights of private sector employees to organize into trade unions.