New Deal failures (industry)

Question 1

Limitations of the NRA

Answer 1

• Companies did not have to sign up to the NRA, Henry Ford refused to join
• Large firms could work together to exploit the codes by limiting output - allowed them to reduce their workforce and raise prices
• Sick Chickens Case (1935) declared the NRA unconstitutional
• The NRA also discriminated against small firms:
• The National Recovery Review Board (1934) acknowledged that small firms were disadvantaged by the codes

Question 2

Industrial production levels

Answer 2

• The recession decreased the progress made on industrial production:
  1936: 58
  1938: 56

During the recession, production of motor cars fell by 13%

Question 3

World War Two

Answer 3

• World War Two had a significant impact on industrial production levels:
  1938: 56
  1945: 100