The New Deal and World War 18

The New Deal and World War 18 - abundant crops Crop...

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The New Deal and World War II Roosevelt’s leadership through economic reconstruction, war Agriculture.  In the spring of 1933, the agricultural sector of the economy was in a state  of collapse. It thereby provided a laboratory for the New Dealers’ belief that greater  regulation would solve many of the country’s problems. In 1933, Congress passed the  Agricultural Adjustment Act (AAA) to provide economic relief to farmers. The AAA  proposed to raise crop prices by paying farmers a subsidy to compensate for voluntary  cutbacks in production. Funds for the payments would be generated by a tax levied on  industries that processed crops. By the time the act had become law, however, the  growing season was well under way, and the AAA paid farmers to plow under their 
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Unformatted text preview: abundant crops. Crop reduction and further subsidies through the Commodity Credit Corporation, which purchased commodities to be kept in storage, drove output down and farm prices up. Between 1932 and 1935, farm income increased by more than 50 percent, but only partly because of federal programs. During the same years that farmers were being encouraged to take land out of production – displacing tenants and sharecroppers – a severe drought hit the Plains states. Violent wind and dust storms during the 1930s created what became known as the “Dust Bowl.” Crops were destroyed and farms ruined....
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