Economics and the national recovery administration

The N.R.A. went into effect at the peak of a revival containing ments bound to lead to a recession, which has since come. The work-sharing pro gram has succeeded in increasing employment and payrolls during the setback of general business, while retall buying has been correspondingly sustained The Act is eriticised as sacrificing a revival in the field of capital equipment to sustain demand for consumers' goods. However, the Securitles act and monetary un certainty contala more unmistakable handicaps: and the removal of obstacles in these felds may be sufident. As to the N.R.A, danger lies not only in the raising of industrial costs, but in the measures taken to compensate by protecting profits. Surplus labor will not soon disappear even with revival; the development of the domestie market will not automatically keep pace with increasing productive power; bence there is continuing need to deal with these problems and to attempt to base recovery more on diffused consumer purchasing power and less on an Inberently temporary boom in eapital equipment. The organization of the N.R.A, viewed as a social constitution for industry, is only a step, though in line with what is probably an inevitable development.