President Franklin D. Roosevelt once said in his 1933 inaugural address; “The only thing we have to fear is fear itself” which made a lasting impact on American lives during the Great Depression. During this time period banks and businesses had dropped into a crisis which sent everyone into a panic. Many thought that the depression would not last long and that it had only been a temporary crisis or business cycle. This depression in particular lasted longer than the others and cause more business failures and unemployment. Also, it affected more people consisting both the middle class and working class. The whole country was affected by this, including farm problems, income distribution, world trade and finance and government policy.
Roosevelt moved aggressively to address the crisis facing the nation's farmers. No group was harder hit by the Depression than farmers and farm workers. At the start of the Depression, a fifth of American families still lived on farms. When prices fell they tried to produce even more to pay their debts, taxes and living expenses. This eventually lead to overproduction and supply and demand came into affect. In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms. As farm incomes fell, farm tenancy soared; two-fifths of all farmers worked on land that they did not own. They were angry and wanted the government to step in to keep farm families in their homes. They had to pay their taxes and debts to the bank in cash. Eventually, the Federal government passed a bill to help the farmers. Surplus was the problem, farmers were producing too much and lowering down the price. The government passed the Agricultural Adjustment Act (AAA) of 1933 which set limits on the size of the crops and herds farmers could produce. Those farmers that agreed to limit production were paid a financial support.
Farmers struggled with low prices all through the 1920s, but after 1929 things began to be hard for city...