Planning a Way Out: Industrial Recovery From TVA to NRA

Question 1

What is the TVA?

Answer 1

The TVA (Tennessee Valley Authority) is the New Deal’s most extensive exercise in state-led planning for industrial, agricultural and social development across many states; its initiatives include (79-82):

– dam construction and flood control;
– electricity generation and sale;
– grants for rural community power distribution and consumer applicance purchases foster a viable rural market for private utilities;
– agricultural rehabilitation and development;
– model town construction: Norris AL;
– infrastructure (roads, services) provision;
– attracting investment, new industries and jobs

Question 2

Describe the National Industrial Recovery Act (NIRA)

Answer 2

The NIRA was a law passed in 1933 as an attempt to combat the economic crisis. It aimed to stimulate industrial recovery and establish fair business practices. One of the key provisions of the NIRA was Section 7a, which protected workers’ rights to form unions and engage in collective bargaining with their employers.

To enforce and oversee the NIRA, President Franklin D. Roosevelt established the NRA. The NRA was a government agency responsible for creating and enforcing industry-specific codes of fair competition. These codes set standards for wages, working hours, production levels, and other business practices. Participating businesses would display the “Blue Eagle” symbol, indicating their compliance with the codes.

Question 3

What is Section 7a?

Answer 3

Section 7a of the NIRA aimed to promote fair labor practices and encourage collective bargaining between employers and employees. It stated that workers had the right to organize and join labor unions of their choice, as well as the right to engage in collective bargaining with their employers. This provision was significant because it recognized and protected the rights of workers to negotiate for better wages, working conditions, and benefits.

Section 7a encouraged employers to voluntarily adopt “codes of fair competition” that would establish industry-wide standards for wages, hours, and working conditions. These codes were meant to eliminate unfair competition and promote fair practices within industries.

Question 4

Describe the NRA (National Recovery Administration).

Furthermore, describe NRA’s impact.

Answer 4

To enforce and oversee (overvåge) the NIRA, FDR established the NRA.

The NRA was a government agency responsible for creating and enforcing (håndhæve) industry-specific codes of fair competition. These codes set standards for wages, working hours, production levels, and other business practices. Participating businesses would display the “Blue Eagle” symbol, indicating their compliance with the codes.

The NRA’s Impact:

• Extensive reach: over 700 codes covering 38 million workers;
• FDR claimed 4 million new jobs; one think tank calculated 1.5 million new jobs;
• PWA was slow to spend its budget and thus had a limited stimulus effect;
• NRA’s net effect on aggregate demand, business profits and recovery was limited;
• NRA did end sweat-shops and child labour;
• More effective vis-a-vis consumer goods than producer goods industries;
• Significant politically more than economically

Question 5

Describe the Anti-trust laws

Answer 5

Antitrust laws are rules put in place to promote fair competition and prevent monopolies or unfair business practices. They aim to protect consumers and maintain a level playing field in the marketplace.

In simple terms, these laws ensure that no single company becomes too powerful or controls an entire industry. They prevent companies from colluding to fix prices, allocate markets, or rig bids, which would harm consumers by limiting their choices or driving up prices.

Overall, antitrust laws help keep markets competitive and protect consumers by ensuring that no single company has too much control, and that businesses have a fair chance to thrive and offer consumers a variety of choices at reasonable prices.