The National Industrial Recovery Act (NIRA) was signed into law as part of President Franklin D. Roosevelt’s New Deal programs aimed at counteracting the economic downturn caused by the Great Depression. Enacted primarily to encourage industrial growth and improve labor conditions, the act allowed for the establishment of Industry Codes. These codes could set prices, limit production, and regulate wages, effectively giving businesses a legal framework to cooperate without violating antitrust laws. The idea was to stabilize prices, reduce competition, and stimulate consumer demand by creating higher wages and better working conditions.

The National Recovery Administration (NRA) was created to oversee the implementation of NIRA, enforcing these codes and ensuring compliance among businesses. The NRA also aimed to avoid the chaos of unchecked competition that characterized the pre-Depression economy. It introduced the famous blue eagle emblem as a symbol of cooperation and compliance among businesses. However, the act faced criticism for promoting monopolies and failing to revive the economy as effectively as anticipated.

Despite its intentions, the legislation was challenged in the Supreme Court, ultimately leading to its declaration as unconstitutional in 1935. This landmark ruling significantly impacted Roosevelt's New Deal policies and reshaped the relationship between industry and federal regulation. While NIRA was short-lived, it set the stage for future labor legislation and economic reforms during a time of unprecedented economic turmoil in the United States.