Agricultural Adjustment Agency

The Agricultural adjustment agency was of slight significance as it, did not help to recover the nation. The idea behind Agricultural adjustment agency was to help farmers by controlling farm production and stabilising prices. It was an attempt to end the over-production and falling agricultural prices that had crippled American farmers. This however was not the case. The government paid farmers to produce less, by taking land out of the production or reducing their livestock. This resulted in less produce being produced meaning the prices were increased by nearly double. On one hand, the farmers’ income was doubled from 1933 to 1939, however on the other hand the citizens have to spend more of their money more for produce that wasn’t getting
In the years before New Deal, only 40% of Americans managed to reach the status of. The reason the other 60% failed to live up to par was the extremely restrictive mortgage system. Citizens would be required to make down payments at high prices, including interest, and after a brief period of five to ten years, an average household was not earning enough to pay it off. Following the Wall Street crash, the number of mortgages given out nationwide went from over 5,000 in 1928 to an embarrassing 864 in 1933. Many banks shut down and left the home owners to fend for themselves. Thousands of people were unemployed and many places were in desperate need of public housing. The HOLC completely changed mortgage system. It offered money at a 5%, a massive drop from the previous 35%, provided insurance for its loans through different federal corporations, and allowed up to twenty-five years for repayment, giving people more time to earn the money needed. Every loan situation was taken care of individually, including personal visits to stop any potential problems from occurring. The new corporation improved the probability that clients would meet their obligations by providing them with jobs. HOLC policies favored single-family homes outside the central cities. The private sector bankers and realtors excluded the majority of minorities from consideration, due to this bias. Records of the agency showed that between 1933 and 1936, the period it was issuing loans, 44% of its help went to areas that were primarily white, 42% went to white and foreign areas, leaving only 1% to primarily black areas. Half of cities such as Detroit where blacks lived, was not given any thought about, as was one third of Chicago. In spite of this, the New Deal innovation helped home ownership rise from 40% of the population in the 1920s to nearly 70% by the 1990s. Over all, the HOLC was moderately significant because