Question

ILLINOIS Ohio R KENTUCKY INIA Mo, Pducah it R. Nashville NO CAROLINA RTH Knoxville TENNESSEE Asheville Chattanooga H'- 11 SOUTH CAROLINA Muscle en Shoals GEORGIA ALABAMA Tennessee Valley Region MISSISSIPPI IA Dams 50 100 miles Power plants 0 50 100 kilometers Map 24-3 The Amenicen Promise. Fourth Edition The Tennessee Valley Authority

What does the map suggest about how the TVA helped American workers during the Great Depression?

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Answer 1

Solution:

During great depression, there was acute unemployment and the economy was in the vicious circle i.e due to unemployment, people had no money. This reduced demand of goods and services. This further cut production and employment further decreased. The economy was in absolute stage of chaos.

The policy of increasing aggregate demand on the basis of Keynesian theory stimulated government to spend enormously so that employment may increase and the economy may get a positive shock to get out of the vicious circle.

The Tennessee Valley Authority as can be seen in the map, implemented the policy and spent heavily in the infrastructure sector i.e in constructing dams and power plants which could employ a large number of skilled and unskilled workers and the electricity generated could further boost industrialisation.