AAA And The Great Depression Essay

510 Words3 Pages

Of all the Alphabet Agencies established under Roosevelt’s New Deal, the AAA, the WPA, and the FDIC had the most impact on helping America to recuperate from the terrible effects of the Great Depression. The Great Depression led to many American companies going out of business or cutting their workforce drastically to survive, which left many Americans unemployed. The AAA (Agricultural Adjustment Act) was put in place to deal with the masses of food product being produced in America after the war. After WW1, American farms expanded to produce lots more food to sell in Europe as many European farms had been destroyed. When European farming eventually recovered, they no longer needed to buy American produce, leaving American farmers with far …show more content…

It also helped to stop more farmers going bankrupt. Roosevelt’s agency bought and slaughtered 6 million livestock to again decrease supply and stabilize the market for meat. The AAA had a major impact on America’s recovery from the Great Depression, because it decreased the supply of crops, stabilizing prices, and keeping farmers in business. Whereas the AAA was a fundamental part of America’s recovery, the WPA (Workers Progress Administration) was instrumental in fulfilling the relief portion of Roosevelt's 3 R’s plan, by providing jobs and income to unemployed men and women as an immediate action to help the economy. The WPA supplied jobs to 3 million men and women. At this time, these people were in desperate need of work and money. By creating paid work, the WPA increased consumer spending, increasing demand for products and helping to get the economy moving again. The formation of the FDIC (Federal Deposit Insurance Corporation) links to Roosevelt’s ideas of reform as it was designed to restore confidence in the American banking system by the government guaranteeing a certain amount of a saver’s money deposited in each

More about AAA And The Great Depression Essay

Open Document