How did the new deal legislation try to stabilize agriculture and industry

1 answer:

7 0

The New Deal tried to stabilize agriculture by implementing the AAA. The AAA (Agricultural Adjustment Act) paid farmers not to make more of their crops. Franklin D. Roosevelt did this because farmers had created a surplus of goods, meaning they had produced more goods than consumers wanted to buy. This surplus lead to a sharp decline in price. By stopping the farmers from farming, it helped to increase the price of goods, as there would no longer be a surplus once citizens kept buying the goods.

The New Deal tried to stabilize industry by creating the National Recovery Administration (NRA). This focused on having the government and businesses work together in order to establish a code of ethics for businesses and to set prices for goods in order to stimulate the economy.

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