may 25, 1933 - AAA made effective (may 1933)

Description:

made millions of $$ available to help farmers pay mortgages, new deal program designed to raise agricultural prices by paying farmers not to farm; based on assumption that higher prices --> increase farmers' purchasing power --> alleviate Great Depression;

Radical new approach to farm recovery, Est parity prices for basic commodities; Eliminate price-depressing surpluses, paying growers to reduce crop acreage, Millions of $ needed for these payments raised by taxing farm product processors like flour millers ⇒ shift burden to consumers;

Began after much of cotton crop (1933) planted, mules forced to plow young plants, Millions of pigs purchased & killed, much of meat distributed to ppl on relief, some used for fertilizer; Seen as "sinful" destruction of food,left increase condemnation of US economic system ;

raised farm income, criticized a lot, Farmers, food processors, taxpayers = unhappy; Paying farmers not to farm → increased unemployment, other New Deal agencies try to reduce it; Supreme Court kills it (1936), declaring regulatory taxation provisions unconstitutional;


Second version of this (1938) passed 2 years later, more comprehensive substitute; Continued conservation payments, had two goals partially achieved, If growers observed acreage restrictions on specified commodities → eligible for parity payments, Other provisions designed to give farmers fairer price & more substantial share of national income

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