The REA loans contributed significantly to increases in crop output and crop productivity and helped stave off declines in overall farm output, productivity, and land values, but had much smaller effects on nonagricultural parts of the economy.
What was the Rural Electrification Administration Rea and what were its effects?
After establishing the Agricultural Adjustment Administration (AAA) to bring relief to farmers and the Tennessee Valley Authority (TVA) to develop power projects in the Southeast, the Roosevelt administration in 1935 established the Rural Electrification Administration (REA) to create badly needed jobs and to build ...
What was an important result of the Rural Electrification Act of 1936?
when Congress passed and President Roosevelt signed the Rural Electrification Act of 1936. After 1949, the R.E.A. was authorized to finance the formation of telephone cooperatives, through low-interest federal loans , to extend telephone service to underserved rural areas.
What was an important result of the Rural Electrification Act of 1936 quizlet?
What was an important result of the Rural Electrification Act of 1936? Most of the rural areas of the southeast received electricity . FDR’s programs can get the U.S. out of the Great Depression.
What was the impact of electrification?
In the short-run, rural electrification led to increases in agricultural employment, rural farm population, and rural property values , but there was little impact on the local non-agriculture economy. Benefits exceeded historical costs, even in rural areas with low population density.
Does the REA still exist today?
The REA was terminated on October 13, 1994, with the passage of the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994. Its functions were absorbed into the newly-created Rural Utilities Service [9].
Was the Rural Electrification Act successful?
Rural electrification became one of the most successful government programs ever enacted . Within 2 years it helped bring electricity to some 1.5 million farms through 350 rural cooperatives in 45 of the 48 states. By 1939 the cost of a mile of rural line had dropped from $2,000 to $600.
Who benefited from the Rural Electrification Act?
Advantages of the Rural Electrification Act
Gains in productivity meant that farmers made more money and were able to pay back the REA loans. The default rate on these loans was less than 1%. 4 In other words, the government managed to provide electricity to its rural population essentially for free.
Why is rural electrification important?
Rural electrification can meet most of these and the impact can be seen on improved farm productivity , improved health and education, improved communication and economic development through creation of employment in rural areas which traditionally depend on agriculture related income generation activities.
What was Roosevelt’s initiative?
The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.
Which statement describes a major cause of the stock market crash of 1929?
Based on the above information and your knowledge of the time period, the statement that BEST explains why the stock market crashed in 1929 is as stock prices began to drop, more brokers made “margin calls” which led to more devaluing of stock as panic set in as shares flooded the market.
Which was a result of the Great Depression quizlet?
The stock market crash of October 1929 brought the economic prosperity of the 1920s to a symbolic end. The Great Depression was a worldwide economic crisis that in the United States was marked by widespread unemployment, near halts in industrial production and construction, and an 89 percent decline in stock prices .
How did FDR help farmers quizlet?
What action did the second New Deal take to help farmers? It gave them financial aid and paid them to work less ; in order to do this, the government raised the farmers’ crop prices. ... It allowed for unions to converse and be protected from previous acts or abuses from the government or bosses.
Why is electrification a big deal?
Depending on the resources used to generate electricity, electrification can potentially reduce carbon dioxide (CO2) emissions from the transportation, building, and industrial sectors , which account for 63 percent of all US greenhouse gas emissions.
How electricity affects our daily lives?
Electricity has many uses in our day to day life. It is used for lighting rooms, working fans and domestic appliances like using electric stoves , A/C and more. ... Electricity also provides means of amusement, radio, television and cinema, which are the most popular forms of entertainment are the result of electricity.
What is the purpose of electrification?
Electrification is the process of powering by electricity and, in many contexts, the introduction of such power by changing over from an earlier power source . The broad meaning of the term, such as in the history of technology, economic history, and economic development, usually applies to a region or national economy.
