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The New Deal is gonna be great!
Sure hope I get my money back.
The Agricultural Adjustment Act was put into place in May of 1933 by President Roosevelt. This was one of the very first legislative proposals under his New Deal.
To restore the purchasing power of farmers was the main intent of the AAA. It successfully balanced both supply and demand for farm commodities. The AAA did this so that crop prices would support a decent purchasing power for farmers.
This is unconstitutional!
The AAA offered payments to farmers so that they wouldn't produce certain basic crops. The supply of corn, rice, wheat, cotton, milk, peanuts, and tobacco was controlled entirely by the AAA.
The Agricultural Adjustment Act fell under President Roosevelt's New Deal. The three R's of this New Deal were relief, reform, and recover. The AAA can be classified as as act of Reform, for it regulated production of specific crops, fixing the Agricultural system.
The Agricultural Adjustment Act did not prove to be very successful. In the 1936 case of the United States vs. Butler, the Supreme Court deemed the AAA unconstitutional.
Soon after the Agricultural Adjustment Act was created, it was put out of action, and has not continued. Modern American farmers have no regulations on crops and are free to grow what they like. However, many improvements were made to make farmers earn more.
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