Tennessee Valley Authority Act

Context

When the stock market crashed on October 29, 1929, the United States plummeted full force into the worldwide economic crisis of the Great Depression. In the United States approximately 25 percent of the workforce was without jobs, and for those with jobs, wages fell by as much as 43 percent. Factories, mills, and banks closed, and many farming families lost their farms and homes. People were desperate and took to the roads in search of employment. Little work was found, however, and “Hoovervilles”—shantytowns thrown together and named after President Hoover—sprang up all over the country. Hoover believed that the economic crisis would be short-lived and assured the American people that it would be over in sixty days. Hoover, a proponent of rugged individualism, did not believe the federal government should provide relief to the struggling public. The American people despised Hoover by the end of his term, and they were ready for a change.

Roosevelt promised the American people a “new deal,” and he defeated Hoover in a landslide victory in the 1932 presidential election. Wasting no time, Roosevelt refused the traditional inaugural ball and parties and went right to work, calling Congress to a special session on his first day in office. Roosevelt focused on the “three Rs”—relief, recovery, and reform—and laid the groundwork for his New Deal. Dozens of executive orders were issued, major laws were passed, and agencies were formed, all with the goal of pulling America out of the Depression. Among these many agencies were groundbreaking programs like the Civilian Conservation Corps, Farm Credit Administration, National Industrial Recovery Act, Public Works Administration, and the TVA. Not without critics and challenges, the New Deal and Roosevelt received overwhelming support from the American people. World War II, however, brought about the end of the New Deal and the Great Depression.