The Agricultural Adjustment Act that was established in the early days of the New Deal actually paid farmers to plant less cotton. It was a way of restricting the cotton supply to increase the price. The Bankhead Cotton Control Act of 1934 controlled cotton production even more tightly. What impact did these New Deal policies have on the economy of Georgia?

Question

The Agricultural Adjustment Act that was established in the early days of the New Deal actually paid farmers to plant less cotton. It was a way of restricting the cotton supply to increase the price. The Bankhead Cotton Control Act of 1934 controlled cotton production even more tightly. What impact did these New Deal policies have on the economy of Georgia?

A.
They raised the price of cotton but didn’t change the economy.
B.
They raised the price of cotton and boosted the economy.
C.
They controlled cotton production, which hurt the economy.
D.
They caused a depression in the economy of cotton in Georgia.

Answer 1

B. They raised the price of cotton and boosted the economy.

By restricting cotton supply and increasing prices, the Agricultural Adjustment Act and the Bankhead Cotton Control Act had a positive impact on the economy of Georgia, as they helped to increase profits for cotton farmers and stimulate economic growth within the state.