Laissez-Faire vs Regulation · US History

What was the significance of the Wagner Act (National Labor Relations Act) of 1935?

  1. It established the legal right of workers to join unions and bargain collectively
  2. It outlawed all labor unions in the United States
  3. It mandated that the government set all industrial wages
  4. It provided direct federal subsidies to companies that refused to hire any union members
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Correct answer: It established the legal right of workers to join unions and bargain collectively

The Wagner Act was a massive expansion of federal regulation into the workplace. It created the National Labor Relations Board to oversee union elections and investigate 'unfair labor practices' by employers.

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