Franklin D. Roosevelt's National Industrial Recovery Act (NIRA)

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Franklin D. Roosevelt based his New Deal policy on what happened during World War I which had only recently ended. During that war, the government established to set wages and prices. FDR reasoned that if it worked for wartime, it should work during peacetime. He created the New Deal and the base of his plan to fix the economy was the National Industrial Recovery Act (NIRA) which the President announced in 1933. FDR created the NIRA because he believed he could use the government to raise both prices and wages. He believed that higher prices would raise profits which would make any business happy and that higher wages would raise income which would in turn make workers happy. More profits for business means more money to hire new workers and

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