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The National Labor Relations Act (Wagner Act) and the Fair Labor Standards Act (FLSA) are landmark legislation passed in the United States during the New Deal era, aiming to improve labor conditions and provide worker protection. The National Labor Relations Act was signed into law in early July 1935. It gave workers the right to organize, forming unions that would bargain with employers for better wages, hours, and working conditions (Lange, 2017). However, the National Labor Relations Act (Wagner Act) mainly benefited immigrant workers in manufacturing and related industries, and agricultural and domestic workers were largely excluded. These industries were the main areas of employment in the South, especially for African Americans. This exclusion resulted in large numbers of African American workers being denied the protections and benefits of the act. The FLSA, passed in 1938, established minimum wages, overtime pay, and child labor standards and placed restrictions on the employment of minors to protect them from exploitation and dangerous working conditions (Genovese, 2021). But for African Americans, while wages and working conditions have improved, the overall impact has been limited due to persistent racial discrimination in this labor market.
The National Labor Relations Act (Wagner Act) ‘s impact on economic recovery indirectly promotes consumption growth by raising wages and improving worker treatment. It strengthens the stability of the labor market, reduces labor disputes, and promotes improved production efficiency. A stable labor market is conducive to continued economic growth and recovery. The Fair Labor Standards Act (FLSA) encourages companies to reduce working hours by regulating overtime pay and increasing job demand. At the same time, restricting child labor encourages companies to hire adult workers, improves the quality of human capital, and contributes to long-term economic growth.
However, laws such as the National Labor Relations Act (Wagner Act) and the Fair Labor Standards Act (FLSA) have had limited impact on minorities, especially immigrants and African Americans, due to significant exclusions and widespread discrimination of the era. It can solve the core economic problems during the Great Depression, and its impact on ending the Great Depression is more to lay the foundation for long-term economic stability and growth.
Reference:
Lange, B. (2017). Implementing New Deal programs. In The Stock Market Crash of 1929, Updated Edition. Chelsea House. online.infobase.com/Auth/Index?aid=239824&itemid=WE52&articleId=358435
Genovese, M., A. (2021). Fair labor standards act (flsa). In M. A. Genovese & A. D. Howard, Encyclopedia of the American Presidency (4th ed.). Facts On File. https://search.credoreference.com/articles/Qm9va0FydGljbGU6NDkzMDQ1MQ==?aid=239824Links to an external site.
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