what was the supreme court reaction to the national industrial recovery act
National Industrial Recovery Act of 1933 The National Industrial Recovery Act of 1933 (NIRA) was a US labor law and consumer law passed by the US Congress to authorize the President to regulate industry for fair wages and prices that would stimulate economic recovery.[1] It also established a national public works program known as the Public Works Administration (PWA, not to be confused with the WPA of 1935).[2] The National Recovery Administration (NRA) portion was widely hailed in 1933, but by 1934 business' opinion of the act had soured.[3] By March 1934 the "NRA was engaged chiefly in drawing up these industrial codes for all industries to adopt."[4] However, the NIRA was declared unconstitutional by the Supreme Court in 1935 and not replaced.[3][5][6]
United States labor law Throughout the early 20th century, states enacted labor rights to advance social and economic progress. But despite the Clayton Act, and abuses of employers documented by the Commission on Industrial Relations from 1915, the Supreme Court struck labor rights down as unconstitutional, leaving management powers virtually unaccountable.[32] In this Lochner era, the Courts held that employers could force workers to not belong to labor unions,[33] that a minimum wage for women and children was void,[34] that states could not ban employment agencies charging fees for work,[35] that workers could not strike in solidarity with colleagues of other firms,[36] and even that the federal government could not ban child labor.[37] It also imprisoned socialist activists, who opposed the fighting in World War One, meaning that Eugene Debs ran as the Socialist Party's candidate for President in 1920 from prison.[38] Critically, the courts held state and federal attempts to create social security to be unconstitutional.[39] Because they were unable to save in safe public pensions, millions of people bought shares in corporations, causing massive growth in the stock market.[40] Because the Supreme Court precluded regulation for good information on what people were buying, corporate promoters tricked people into paying more than stocks were really worth. The Wall Street Crash of 1929 wiped out millions of people's savings. Business lost investment and fired millions of workers. Unemployed people had less to spend with businesses. Business fired more people. There was a downward spiral into the Great Depression. This led to the election of Franklin D. Roosevelt for President in 1932, who promised a "New Deal". Government committed to create full employment and a system of social and economic rights enshrined in federal law.[41] But despite the Democratic Party's overwhelming electoral victory, the Supreme Court continued to strike down legislation, particularly the National Industrial Recovery Act of 1933, which regulated enterprise in an attempt to ensure fair wages and prevent unfair competition.[42] Finally, after Roosevelt's second overwhelming victory in 1936, and Roosevelt's threat to create more judicial positions if his laws were not upheld, one Supreme Court judge switched positions. In West Coast Hotel Co v Parrish the Supreme Court found that minimum wage legislation was constitutional,[43] letting the New Deal go on. In labor law, the National Labor Relations Act of 1935 guaranteed every employee the right to unionize, collectively bargain for fair wages, and take collective action, including in solidarity with employees of other firms. The Fair Labor Standards Act of 1938 created the right to a minimum wage, and time-and-a-half overtime pay if employers asked people to work over 40 hours a week. The Social Security Act of 1935 gave everyone the right to a basic pension and to receive insurance if they were unemployed, while the Securities Act of 1933 and the Securities Exchange Act of 1934 ensured buyers of securities on the stock market had good information. The Davis–Bacon Act of 1931 and Walsh–Healey Public Contracts Act of 1936 required that in federal government contracts, all employers would pay their workers fair wages, beyond the minimum, at prevailing local rates.[44] To reach full employment and out of depression, the Emergency Relief Appropriation Act of 1935 enabled the federal government to spend huge sums of money on building and creating jobs. This accelerated as World War Two began. In 1944, his health waning, Roosevelt urged Congress to work towards a "Second Bill of Rights" through legislative action, because "unless there is security here at home there cannot be lasting peace in the world" and "we shall have yielded to the spirit of Fascism here at home."[45]