130k views
4 votes
What was one controversial element of the new deal’s agricultural adjustment act?

User Pmdba
by
7.0k points

1 Answer

4 votes

Final answer:

The controversial aspect of the New Deal's Agricultural Adjustment Act was its policy to pay farmers to reduce production to increase prices, financed by a tax on food processors, leading to higher consumer prices, and included the destruction of crops and livestock during a period of widespread hunger.

Step-by-step explanation:

The controversial element of the New Deal's Agricultural Adjustment Act (AAA) was its policy of reducing agricultural production by paying farmers to leave a portion of their land idle in order to boost commodity prices. This policy was contentious for several reasons, including the destruction of crops and livestock at a time when many were going hungry during the Great Depression. Some of the already harvested surplus, such as cotton and livestock, was destroyed to reduce the market glut, resulting in public outcry.

The intention behind the AAA was to tackle the problem of overproduction in agriculture, which had led to plummeting prices and severe hardships for farmers. The government attempted to stabilize the market by providing direct payments to farmers in exchange for crop reduction, with the goal of increasing commodity prices to a level that could sustain rural communities. However, financing the subsidy payments through a tax on food processors, which was then passed on to consumers in the form of higher food prices, was another controversial aspect. This strategy aimed to alleviate farm debt and increase the asset value of farm loans but was criticized for contributing to higher costs for consumers amidst economic distress.

User Trisek
by
8.3k points