Which cornerstone of the New Deal is described by a policy to support industry through codes of fair competition?

• A. Great Depression
• B. Stock Market Crash
• C. New Deal
• D. National Industrial Recovery Act and National Recovery Administration

Answer: (D)

The policy that aimed to lift industry by arranging codes of fair competition is embodied in the National Industrial Recovery Act and the National Recovery Administration. In 1933, Congress gave the president power to create industry-wide codes that set standards for prices, wages, hours, and production, with the NRA enforcing these codes. The goal was to reduce destructive competition, stabilize industry, and raise wages to stimulate demand, signaling a move toward coordinated, government-guided business recovery rather than pure laissez-faire. This approach sits squarely in the New Deal strategy of using federal oversight to organize and revitalize the economy through industry-wide rules. (Note: the NRA’s authority was later struck down by the Supreme Court, but the policy idea—using codes to regulate industry—was a defining New Deal mechanism.)