The National Recovery Administration: An Analysis and Appraisal

By Leverett S. Lyon; Paul T. Homan et al. | Go to book overview

CHAPTER XXVI
THE PLANE OF COMPETITION AND THE FACILITATION OF COMPETITION

The three preceding chapters have been concerned with a discussion of those trade practice provisions of codes which in the main restrict individual economic freedom and which for the most part operate in transferring power of economic decision from individuals to interested industrial groups.

In dealing with trade practices, however, the NRA has established a series of regulations which are of quite a different character and which are more directly in keeping with the notions of the regulation of competition current in England and America prior to the creation of the NRA. Whereas the forms of action discussed in the three preceding chapters carry the implied philosophy that competition should be lessened, the regulations here considered are based on the assumption that competition is desirable. Whereas the regulations discussed in the three preceding chapters carry the implication that it was desirable to give added power over economic decisions to industrial groups, these proceed upon the notion that it is desirable to have these decisions made by individual enterprise. But they proceed upon the assumption that, in making these decisions, individuals should be restrained from acting contrary to what is regarded as the general social interest, and indeed that they should be supported by regulations which tend to facilitate effective competitive activity. In a word, the NRA set up a series of regulations some of which tend to establish a plane of competition. It also set up a num-

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