Final Answer:
In reaction to the passage of the National Industrial Recovery Act of 1933, which was intended to stabilize economic activity, employers formed "codes" among themselves to draw up "codes of fair competition."
Step-by-step explanation:
The National Industrial Recovery Act (NIRA) of 1933 was a key component of President Franklin D. Roosevelt's New Deal policies aimed at addressing the challenges of the Great Depression. In response to NIRA, employers across industries formed collaborative agreements known as ""codes."" These codes were essentially sets of rules and regulations that outlined standards for fair competition within specific industries. The purpose of these codes was to establish fair practices, prevent cutthroat competition, and promote stability in economic activities.
Employers, often organized into industry associations, took part in the process of drafting these codes of fair competition. These collaborative efforts were intended to create a level playing field, regulate working conditions, and eliminate practices that exacerbated economic instability. The codes covered various aspects, including minimum wages, maximum working hours, and fair business practices, with the overarching goal of promoting economic recovery.
While the NIRA and the associated codes aimed to stabilize the economy, their effectiveness was subject to debate. The codes faced criticisms for being too complex and cumbersome, and some were later declared unconstitutional. Nevertheless, the NIRA and the collaborative efforts of employers to form codes represented a significant attempt to address the economic challenges of the time and bring about a measure of stability during a period of severe economic hardship.