FDR's New Deal

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American History


Written by:

James H


Date added:

December 4, 2015








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2 / 520


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The AAA established "parity prices" for basic supplies. The "parity was the price set for a product that gave it the same real value, in purchasing power, that it had enjoyed during the period from 1909 to 1914." The agency also paid farmers to reduce their crop acreage in an effort to eliminate surpluses...
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Millions of dollars were needed for payments and so processors of farm products were taxed in order to raise the money. "Subsidized scarcity" did effectively raise farm income, but many were opposed to the ideas. "Paying farmers not to farm actually increased unemployment." FDR's New Deal strove to achieve a lower unemployment rate...
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