s, quantity and demand determined prices for farm goods. Because there was too large of food supply, farm prices dropped dramatically. Farmers left their food in the fields to rot. Some used their grain as fuel -at least it was cheaper than coal others just abandoned their farms or were evicted because they had no money to pay their bill or meet their mortgage payments . (Goodwin, 194)In 1933 Roosevelt and his advisors contrived the Agricultural Adjustment Act (AAA), which with some modifications, is still in effect today. The AAA raised farm prices by paying farmers to cut back production. Farmers were also paid if they did not use a portion of their land. To cut food production when people were hungry seemed a terrible thing to do. This contradiction between the government's program of controlling food abundance and the reality if millions of Americans suffering from a lack of food was never resolved. For the farmers the AAA worked. Prices for their goods rose and even many of the most conservative farmers came to regard Roosevelt as a savior. One of the poorest of all American farm areas was the Tennessee River valley. To provide the basic benefits of electricity to this depressed area, FDR in 1933 asked Congress to create the Tennessee Valley Authority (TVA). The TVA eventually built15 more dams both to control river flooding and to create cheap electric power. States affected by the TVA were parts of Virginia, North Carolina, Kentucky, Georgia, Alabama and Tennessee. While some saw the TVA as a threat to private enterprise, most Americans viewed it as a bold and original way of handling one of the nation's most serious regional problems. For the troubled business community, in 1933 the New Deal created the Federal Deposit Insurance Cooperation (FDIC), functions to this day. The FDIC guaranteed bank deposits so that people were assured by the government of their personal savings and other capital. This stopped such p...
