National Recovery Act - Definition and Overview

The United States National Industrial Recovery Act (NIRA) of June 16, 1933 established codes of fair competition aimed at supporting prices and wages and stimulating economic revival from the Great Depression of 1929-33. The law created a National Recovery Administration (NRA) to promote compliance on the part of corporations. Firms which voluntarily complied could display the Blue Eagle.

The NIRA was overturned on May 27, 1935 when the Supreme Court of the United States ruled in the case A.L.A. Schechter Poultry Corp. v. United States (295 U.S. 495) (sometimes called the "sick chicken" case) that the Act encroached upon states' authority, unreasonably stretched the Commerce Clause, and gave legislative powers to code-makers in the executive branch.

Example Usage of National