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Agricultural Adjustment Administration (view source)
Revision as of 20:16, July 21, 2007
, 20:16, July 21, 2007edit
The [[United States]] Agricultural Adjustment Act (AAA) (P.L. 73-10 of May 12, 1933) restricted production during the [[New Deal]] by paying farmers to reduce crop area. It established acreage and production controls, paying farmers not to grow or raise wheat, corn, cotton, hogs, etc., and to plow under crops and destroy livestock. The aim was explicitly to raise the prices of all farm commodities by inducing shortages. The economic “theory” behind this was that if prices and wages were jacked up, that would increase “purchasing power.” The farmers were paid subsidies by the federal government for leaving some of their land idle. The Act created a new agency, the '''Agricultural Adjustment Administration''', to oversee the distribution of the subsidies.
The [[United States]] Agricultural Adjustment Act (AAA) (P.L. 73-10 of May 12, 1933) restricted production during the [[New Deal]] by paying farmers to reduce crop area. It established acreage and production controls, paying farmers not to grow or raise wheat, corn, cotton, hogs, etc., and to plow under crops and destroy livestock. The aim was explicitly to raise the prices of all farm commodities by inducing shortages. The economic “theory” behind this was that if prices and wages were jacked up, that would increase “purchasing power.” The farmers were paid subsidies by the federal government for leaving some of their land idle. The Act created a new agency, the '''Agricultural Adjustment Administration''', to oversee the distribution of the subsidies.
The AAA produced all sorts of dislocations in the economic system. Oats were being burned while the U.S. was importing oats from abroad on a huge scale, killing pigs <ref>Zinn, Howard (1980). A People's History of the United States. Harper & Row. ISBN 0-06-014803-9. </ref> while increasing imports of lard, cutting corn production while importing 30 million bushels of corn from abroad.
==100 Days==
==100 Days==