Mallo Cups are an American milk chocolate cup-shaped candy that contains a whipped marshmallow center invented in 1936 by Boyer .
143-476: Brothers Bill and Bob Boyer began with production of candies such as fudge and nut clusters in 1936 in their own kitchen as a means of supplementing income during the Great Depression . The candy was wrapped by their mother and sister and the brothers sold the candy door to door. Eventually, production moved to a manufacturing facility and they began experimenting with chocolate. These experiments led to
286-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,
429-530: A library service was instituted for this area. The professional staff at headquarters were generally composed of experts from outside the region. By 1934, TVA employed more than 9,000 people. The workers were classified by the usual racial and gender lines of the region, which limited opportunities for minorities and women. TVA hired a few African Americans , generally restricted for janitorial or other low-level positions. TVA recognized labor unions ; its skilled and semi-skilled blue collar employees were unionized,
572-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around
715-504: A "hidden loss" by preventing the creation of "factories and jobs that would have come into existence if the government had allowed the taxpayers to spend their money as they wished". Defenders note that TVA remains overwhelmingly popular in Tennessee among conservatives and liberals alike. Business historian Thomas McCraw concludes that Roosevelt "rescued the [power] industry from its own abuses" but "he might have done this much with
858-405: A breakthrough in an area known for corporations hostile to miners' and textile workers' unions. Women were excluded from construction work. Many local landowners were suspicious of government agencies, but TVA successfully introduced new agricultural methods into traditional farming communities by blending in and finding local champions. Tennessee farmers often rejected advice from TVA officials, so
1001-547: A diverse portfolio that includes nuclear , coal-fired , natural gas -fired, hydroelectric , and renewable generation. TVA sells its power to 153 local power utilities, 58 direct-serve industrial and institutional customers, 7 federal installations, and 12 area utilities. In addition to power generation, TVA provides flood control with its 29 hydroelectric dams. Resulting lakes and other areas also allow for recreational activities. The TVA also provides navigation and land management along rivers within its region of operation, which
1144-488: A few years after the Mallo Cup. The cardboard coins can be cut out and saved then redeemed for items from the company's prize catalogue, including Mallo Cup candies, clothing, toys, and other collectibles. This confectionery -related article is a stub . You can help Misplaced Pages by expanding it . Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period
1287-604: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to
1430-633: A great deal less agitation and ill will". New Dealers hoped to build numerous other federal utility corporations around the country but were defeated by lobbyist and 1940 Republican presidential nominee Wendell Willkie and the conservative coalition in Congress. The valley authority model did not replace the limited-purpose water programs of the Bureau of Reclamation and the Army Corps of Engineers . However, it has been shown that in river policy,
1573-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to
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#17327869860591716-592: A massive decline in income and to employment that was well below the average. In such a situation, the economy reached equilibrium at low levels of economic activity and high unemployment. Tennessee Valley Authority The Tennessee Valley Authority ( TVA ) is a federally owned electric utility corporation in the United States . TVA's service area covers all of Tennessee , portions of Alabama , Mississippi , and Kentucky , and small areas of Georgia , North Carolina , and Virginia . While owned by
1859-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside
2002-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and
2145-653: A plan to meet the energy needs of the Tennessee Valley through 2020. In 1992 work resumed on Watts Bar Unit 1 , and the reactor began operation in May 1996. This was the last commercial nuclear reactor in the United States to begin operation in the 20th century. In 2002, TVA began work to restart Browns Ferry Unit 1 , the last of TVA's reactors that had been mothballed in 1985. This unit returned to service in 2007. In 2004, TVA implemented recommendations from
2288-422: A projected future increase in electrical consumption, TVA began constructing 500 kilovolt (kV) transmission lines, the first of which was placed into service on May 15, 1965. Electric rates were among the nation's lowest during this time and stayed low as TVA brought larger, more efficient generating units into service. Plants completed during this time included Paradise , Bull Run , and Nickajack Dam . Expecting
2431-841: A projection of further rapid increase in power demand. However, in the 1980s, it became increasingly evident that the agency had vastly overestimated the Valley's future energy needs, and rapid increases in construction costs and new regulations following the Three Mile Island accident posed additional obstacles to this undertaking. In 1981, the board voted to defer the Phipps Bend plant, as well as to slow down construction on all other projects. The Hartsville and Yellow Creek plants were cancelled in 1984 and Bellefonte in 1988. Citing safety concerns, all of TVAs five operating nuclear reactors were indefinitely shut down in 1985 with
2574-579: A proposal from industrialist Henry Ford to build a private dam and create a utility to modernize the Tennessee Valley. In 1930, Norris sponsored the Muscle Shoals Bill , which would have built a federal dam in the valley, but it was vetoed by President Herbert Hoover , who believed it to be socialistic . The idea behind the Muscle Shoals project became a core part of President Franklin D. Roosevelt 's New Deal program that created
2717-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In
2860-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of
3003-927: A small number of 115kV and 230kV lines in Alabama and Georgia that connect to Southern Company lines of the same voltage. TVA has conveyed approximately 485,420 acres (1,964.4 km ) of property for recreation and preservation purposes including public parks, public access areas and roadside parks, wildlife refuges, national parks and forests, and other camps and recreation areas, comprising approximately 759 different sites. Currently, TVA manages approximately 293,000 acres (1,190 km ) of Federally-owned land for public use. These lands are managed as either TVA Natural Areas or TVA Day-Use Recreation Areas. Natural Areas are smaller, ecologically or historically significant areas set aside for conservation, with some areas including hiking and walking trails. Day-Use Recreation Areas comprise approximately 80 different locations throughout
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#17327869860593146-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to
3289-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation
3432-582: Is governed by a nine-member part-time board of directors, nominated by the president of the United States and confirmed by the Senate . A minimum of seven of the directors are required to be residents of TVA's service area. The members select the chair from their number, and serve five-year terms. They receive annual stipends of $ 45,000 ($ 50,000 for the chair). The board members choose the TVA's chief executive officer . When their terms expire, directors may remain on
3575-507: Is staffed 24 hours a day to spot any threats to TVA's 16,000 miles of transmission lines. Given continued economic pressure on the coal industry, the TVA board defied President Donald Trump and voted in February 2019 to close two aging coal plants, Paradise Unit 3 and Bull Run. TVA chief executive Bill Johnson said the decision was not about coal, per se, but rather "about keeping rates as low as feasible". They stated that decommissioning
3718-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated
3861-566: Is the fifth-largest river system in the United States, and assists governments and private companies on economic development projects. TVA's headquarters are located in Downtown Knoxville , with large administrative offices in Chattanooga (training/development; supplier relations; power generation and transmission) and Nashville (economic development) in Tennessee and Muscle Shoals, Alabama . TVA's headquarters were housed in
4004-517: Is under the jurisdiction of the SERC Reliability Corporation . Like most North American utilities, TVA uses a maximum transmission voltage of 500 kilovolts (kV), with lines carrying this voltage using bundled conductors with three conductors per phase. The vast majority of TVA's transmission lines carry 161 kV, with the company also operating a number of sub-transmission lines with voltages of 69 kV and 46kV. They also operate
4147-682: Is used by the National Nuclear Security Administration for nuclear weapons , where it is used to supercharge and boost the explosive yield of the U.S. nuclear arsenal . TVA owns and operates its own electric grid , which consists of approximately 16,200 miles (26,100 km) of lines, one of the largest grids in the United States. This grid is part of the Eastern Interconnection of the North American power transmission grid , and
4290-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that
4433-540: The Environmental Protection Agency (EPA), four state governments, and three environmental groups to drastically reduce pollution and carbon emissions. Under the terms of the agreement, TVA was required to retire at least 18 of its 59 coal-fired units by the end of 2018, and install scrubbers in several others or convert them to make them cleaner, at a cost of $ 25 billion, by 2021. As a result, TVA closed several of its coal-fired power plants in
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4576-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of
4719-678: The Old Customs House in Knoxville from 1936 until 1976, when the current complex opened. The building is now operated as a museum and is listed on the National Register of Historic Places . The Tennessee Valley Authority Police is the primary law enforcement agency for the company. Initially part of the TVA, in 1994 the TVA Police was authorized as a federal law enforcement agency . The Tennessee Valley Authority
4862-550: The Public Utility Holding Company Act of 1935 (PUHCA). During his 1932 presidential campaign, Franklin D. Roosevelt expressed his belief that private utilities had "selfish purposes" and said, "Never shall the federal government part with its sovereignty or with its control of its power resources while I'm President of the United States." U.S. Senator George W. Norris of Nebraska also distrusted private utility companies, and in 1920 blocked
5005-718: The Tennessee Electric Power Company (TEPCO), Jo Conn Guild , was vehemently opposed to the creation of TVA, and with the help of attorney Wendell Willkie , challenged the constitutionality of the TVA Act in federal court. The U.S. Supreme Court again upheld the TVA Act, however, in its 1939 decision Tennessee Electric Power Company v. TVA . On August 16, 1939, TEPCO was forced to sell its assets, including Hales Bar Dam , Ocoee Dams 1 and 2 , Blue Ridge Dam and Great Falls Dam to TVA for $ 78 million (equivalent to $ 1.34 billion in 2023 ). In 1981
5148-500: The Tennessee Valley , a region that had suffered from lack of infrastructure and even more extensive poverty during the Great Depression than other regions of the nation. TVA was envisioned both as a power supplier and a regional economic development agency that would work to help modernize the region's economy and society. It later evolved primarily into an electric utility. It was the first large regional planning agency of
5291-539: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,
5434-576: The federal government , TVA receives no taxpayer funding and operates similarly to a private for-profit company. It is headquartered in Knoxville, Tennessee , and is the sixth-largest power supplier and largest public utility in the country. The TVA was created by Congress in 1933 as part of President Franklin D. Roosevelt 's New Deal . Its initial purpose was to provide navigation , flood control , electricity generation , fertilizer manufacturing, regional planning , and economic development to
5577-571: The late December 2022 North American winter storm . As many as 24,000 Nashville Electric Service customers were without power, with thousands more from smaller distributors affected as well. TVA was heralded by New Dealers and the New Deal Coalition not only as a successful economic development program for a depressed area but also as a democratic nation-building effort overseas because of its alleged grassroots inclusiveness as articulated by director David E. Lilienthal . However,
5720-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It
5863-473: The 1950s. In 1955 coal surpassed hydroelectricity as TVA's top generating source. On August 6, 1959, President Dwight D. Eisenhower signed into law an amendment to the TVA act, making the agency self-financing. During the 1950s, TVA's generating capacity nearly quadrupled. The 1960s were years of further unprecedented economic growth in the Tennessee Valley. Capacity growth during this time slowed, but ultimately increased 56% between 1960 and 1970. To handle
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6006-564: The 2010s, converting some to natural gas. These include John Sevier in 2012, Shawnee Unit 10 in 2014, Widows Creek in 2015, Colbert in 2016, Johnsonville and Paradise Units 1 and 2 in 2017, Allen in 2018, and Paradise Unit 3 in 2020. In 2018, TVA opened a new cybersecurity center in its downtown Chattanooga Office Complex. More than 20 Information Technology specialists monitor emails, Twitter feeds and network activity for cybersecurity threats and threats to grid security. Across TVA's digital platform, two billion activities occur each day. The center
6149-813: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with
6292-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there
6435-521: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in
6578-788: The Eastern District of Tennessee . The initial spill resulted in no injuries or deaths, but several of the employees of an engineering firm hired by TVA to clean up the spill developed illnesses, some of which were fatal, and in November 2018, a federal jury ruled that the contractor did not properly inform the workers about the dangers of exposure to coal ash and had failed to provide them with necessary personal protective equipment. In 2009, to gain more access to sustainable, green energy, TVA signed 20-year power purchase agreements with Maryland-based CVP Renewable Energy Co. and Chicago-based Invenergy Wind LLC for electricity generated by wind farms. In April 2011, TVA reached an agreement with
6721-489: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit
6864-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There
7007-642: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade
7150-481: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on
7293-685: The New Dealers' spending mood by expanding the Army Corps' flood control program. They also helped defeat further valley authorities, the most promising of the New Deal water policy reforms. When Democrats after 1945 began proclaiming the Tennessee Valley Authority as a model for countries in the developing world to follow, conservative critics charged that it was a top-heavy, centralized, technocratic venture that displaced locals and did so in insensitive ways. Thus, when
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#17327869860597436-704: The Reservoir Operations Study (ROS) on how it operates the Tennessee River system. The following year, the company announced its intention to construct an Advanced Pressurized Water Reactor at its Bellefonte site in Alabama, filing the necessary applications in November 2007. This proposal was gradually trimmed over the following years, and essentially voided by 2016. In October 2007, construction resumed on Watts Bar Unit 2 . which began commercial operation in October 2016. Watts Bar Unit 2
7579-641: The TVA Board of Directors broke with previous tradition and took a hard line against white-collar unions during contract negotiations. As a result, a class action suit was filed in 1984 in U.S. District Court charging the agency with sex discrimination under Title VII of the Civil Rights Act of 1964 based on the large number of women in one of the pay grades negatively impacted by the new contract. TVA reached an out-of-court settlement in 1987, in which they agreed to contract modifications and paid
7722-714: The TVA Board voted to approve an advanced approach of nuclear energy technology with an estimated $ 200 million investment, known as the New Nuclear Program (NNP) in February 2022. This would promote the construction of new nuclear power facilities, particularly small modular reactors , with the first facility being constructed in partnership with Oak Ridge National Laboratory at the Clinch River Nuclear Site in Oak Ridge . On December 23, 2022, TVA had several hours of rolling blackouts due to
7865-419: The TVA chairman and another board member, saying they were overpaid and had outsourced 200 high-tech jobs. The move came after U.S. Tech Workers, a nonprofit that works to limit visas given to foreign technology workers, criticized the TVA for laying off its own workers and replacing them with contractors using foreign workers with H-1B visas . Citing its aspiration to reach net-zero carbon emissions in 2050,
8008-477: The TVA forced residents to sell their property at values less than the fair market value , and indirectly destabilized the real estate market for farmland. Some displaced residents committed suicide, unable to bear the events. On some occasions, land that TVA had acquired through eminent domain that was expected to be flooded by reservoirs was not flooded, and was instead given away to private developers. The 1960 film Wild River , directed by Elia Kazan , tells
8151-481: The TVA was controversial early on, as some believed its creation was an overreach by the federal government. Supporters of TVA note that the agency's management of the Tennessee River system without appropriated federal funding saves federal taxpayers millions of dollars annually. Opponents, such as Dean Russell in The TVA Idea, in addition to condemning the project as being socialistic , argued that TVA created
8294-492: The TVA. The agency was initially tasked with modernizing the region, using experts and electricity to combat human and economic problems. TVA developed fertilizers, and taught farmers ways to improve crop yields. In addition, it helped replant forests, control forest fires , and improve habitats for fish and wildlife. The Authority hired many of the area's unemployed for a variety of jobs: they conducted conservation , economic development , and social programs . For instance,
8437-721: The Tennessee River for electricity generation and navigation improvements. The National Defense Act of 1916 , signed into law by President Woodrow Wilson , authorized the construction of a hydroelectric dam on the Tennessee River in Muscle Shoals, Alabama , for the purpose of producing nitrates for ammunition. During the 1920s and the 1930s, Americans began to support the idea of public ownership of utilities , particularly hydroelectric power facilities. Many believed privately owned power companies were charging too much for power, did not employ fair operating practices, and were subject to abuse by their owners, utility holding companies, at
8580-435: The Tennessee Valley Authority. Even by Depression standards, the Tennessee Valley was in dire economic straits in 1933. Thirty percent of the population was affected by malaria . The average income in the rural areas was $ 639 per year (equivalent to $ 11,947 in 2024), with some families surviving on as little as $ 100 per year (equivalent to $ 1,870 in 2023). Much of the land had been exhausted by poor farming practices, and
8723-609: The Tennessee Valley largely concentrated on or near TVA reservoirs that include water access points, campgrounds, hiking trails, fishing piers, and equestrian facilities. TVA operates an economic development organization that works with companies and economic development agencies throughout the Tennessee Valley to create jobs via private investments. They also work with businesses to help them choose locations for facilities and expand existing facilities. Services provided include assistance with site selection, employee recruitment and training, and research. A total of seven sites throughout
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#17327869860598866-544: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This
9009-402: The U.S. federal government, and remains the largest. Under the leadership of David E. Lilienthal , the TVA also became the global model for the United States' later efforts to help modernize agrarian societies in the developing world . The TVA historically has been documented as a success in its efforts to modernize the Tennessee Valley and helping to recruit new employment opportunities to
9152-490: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending
9295-563: The United States and the third largest nuclear power fleet, with seven units at three sites . In addition, they also operate four coal-fired power plants , 29 hydroelectric dams, nine simple-cycle natural gas combustion turbine plants, nine combined cycle gas plants, 1 pumped storage hydroelectric plant, 1 wind energy site, and 14 solar energy sites. In fiscal year 2020, nuclear generation made up about 41% of TVA's total energy production, natural gas 26%, coal 14%, hydroelectric 13%, and wind and solar 3%. TVA purchases about 15% of
9438-622: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in
9581-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had
9724-408: The Valley are certified by TVA as megasites , which contain a minimum of 1,000 acres (4.0 km ), and have access to an Interstate Highway and the potential for rail service, and environmental impact study, and contain or have the potential to contain direct-serve industrial customers. In the late 19th century, the Army Corps of Engineers first recognized a number of potential dam sites along
9867-401: The Valley's electric power needs to continue to grow, TVA began building nuclear power plants in 1966 as a new source of power. The following year, TVA began work on the construction of Tellico Dam , which had been initially conceived in the 1930s and would later become its most controversial project. During the 1970s significant changes occurred in the economy of the Tennessee Valley and
10010-638: The Wall Street crash, after which the slide continued for three years, which was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in
10153-400: The agency's five nuclear reactors return to service, and the institution of a rate freeze that continued for ten years. As the electric-utility industry moved toward restructuring and deregulation , TVA began preparing for competition. It cut operating costs by nearly $ 800 million a year, reduced its workforce by more than half, increased the generating capacity of its plants, and developed
10296-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why
10439-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate
10582-501: The board until the end of the current congressional session (typically in December) or until their successors take office, whichever comes first. The current board members as of January 4, 2023: President Biden has nominated the following to fill a seat on the board. They await Senate confirmation. With a generating capacity of approximately 35 gigawatts (GW), TVA has the sixth highest generation capacity of any utility company in
10725-462: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which
10868-666: The company's nuclear reactor fleet. This includes fuel for the Browns Ferry Nuclear Plant , fuel handling equipment upgrades across the fleet and steam generator replacements at the Watts Bar Nuclear Plant . Framatome will provide its state-of-the-art ATRIUM 11 fuel for the three boiling water reactors at Browns Ferry . This contract makes TVA the third U.S. utility to switch to the ATRIUM 11 fuel design. On August 3, 2020, President Trump fired
11011-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by
11154-525: The creation of the Mallo Cup. Mallo Cups are made from the following ingredients: Milk chocolate (sugar, cocoa butter, milk, chocolate liquor, and soy lecithin), corn syrup, sugar, water, coconut, dextrin, egg whites, salt, guar gum, natural and artificial flavor, potassium sorbate (to preserve freshness) and soy lecithin. In November 2010, Boyer introduced a dark chocolate version of the Mallo Cup. Mallo Cup cardboard wrapper inserts printed with illustrations of coins called "Mallo Cup Points" were introduced
11297-625: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what
11440-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered
11583-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and
11726-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did
11869-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of
12012-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought
12155-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though
12298-402: The expense of consumers. The concept of government-owned generation facilities selling to publicly owned distribution utilities was controversial, and remains so today. The private sector practice of forming utility holding companies had resulted in them controlling 94 percent of generation by 1921, and they were essentially unregulated. In an effort to change this, Congress and Roosevelt enacted
12441-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating
12584-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be
12727-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August
12870-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing
13013-690: The group $ 5 million (equivalent to $ 11.5 million in 2023 ), but denied wrongdoing. TVA has received criticism throughout its entire history for what some have perceived as excessive use of its authority of eminent domain and an unwillingness to compromise with landowners. All of TVA's hydroelectric projects were made possible through the use of eminent domain, and displaced more than 125,000 Tennessee Valley residents. Residents who initially refused to sell their land were often forced to do so via court orders and lawsuits. Many of these projects also inundated historic Native American sites and early Colonial -era settlements. Historians have claimed that
13156-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,
13299-527: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at
13442-468: The intent of also controlling floods, greatly improved the lives of farmers and rural residents, making their lives easier and farms in the Tennessee Valley more productive. They also provided new employment opportunities to the poverty-stricken regions in the Valley. At the same time, however, they required the displacement of more than 125,000 valley residents or roughly 15,000 families, as well as some cemeteries and small towns, which caused some to oppose
13585-575: The investigation. In 1963, U.S. Senator and Republican presidential candidate Barry Goldwater was quoted in a Saturday Evening Post article by Stewart Alsop as saying, "You know, I think we ought to sell TVA." He had called for the sale to private companies of particular parts of the Authority, including its fertilizer production and steam-generation facilities, because "it would be better operated and would be of more benefit for more people if it were part of private industry." Goldwater's quotation
13728-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with
13871-537: The late 1940s and early 1950s, however. TVA was one of the first federal hydropower agencies, and was quickly hailed as a success. While most of the nation's major hydropower systems are federally managed today, other attempts to create similar regional corporate agencies have failed. The most notable was the proposed Columbia Valley Authority for the Columbia River in the Pacific Northwest , which
14014-521: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,
14157-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then
14300-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view
14443-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and
14586-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that
14729-501: The nation's largest electricity supplier. Even so, the demand for electricity was outstripping TVA's capacity to produce power from hydroelectric dams, and so TVA began to construct additional coal-fired plants. Political interference kept TVA from securing additional federal appropriations to do so, so it sought the authority to issue bonds. Several of TVA's coal-fired plants, including Johnsonville , Widows Creek , Shawnee , Kingston , Gallatin , and John Sevier , began operations in
14872-411: The nation, prompted by energy crises in 1973 and 1979 and accelerating fuel costs throughout the decade. The average cost of electricity in the Tennessee Valley increased fivefold from the early 1970s to the early 1980s. TVA's first nuclear reactor, Browns Ferry Unit 1 , began commercial operation on August 1, 1974. Between 1970 and 1974, TVA set out to construct a total of 17 nuclear reactors, due to
15015-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In
15158-426: The officials had to find leaders in the communities and convince them that crop rotation and the judicious application of fertilizers could restore soil fertility. Once they had convinced the leaders, the rest followed. TVA immediately embarked on the construction of several hydroelectric dams, with the first, Norris Dam in upper East Tennessee , breaking ground on October 1, 1933. These facilities, designed with
15301-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during
15444-842: The planned nuclear plants put the agency in deep financial trouble. In an effort to restructure and improve efficiency and financial stability, TVA began shifting towards a more corporate environment in the latter 1980s. Marvin Travis Runyon , a former corporate executive in the automotive industry , became chairman of the TVA in January 1988, and pledged to stabilize the agency financially. During his four-year term he worked to reduce management layers, and reduced overhead costs by more than 30%, which required thousands of workers to be laid off and many operations transferred to private contractors. These moves resulted in cumulative savings and efficiency improvements of $ 1.8 billion (equivalent to $ 3.51 billion in 2023 ). His tenure also saw three of
15587-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in
15730-459: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in
15873-458: The power it sells from other power producers, which includes power from combined cycle natural gas plants, coal plants, and wind installations, and other renewables. The cost of Purchased Power is part of the "Fuel Cost Adjustment" (FCA) charge that is separate from the TVA Rate. In addition, the Watts Bar Nuclear Plant is the only facility in the country to industrially produce tritium , which
16016-658: The program was used as the basis for modernization programs in various parts of the third world during the Cold War , such as in the Mekong Delta in Vietnam , its failure brought a backlash of cynicism toward modernization programs that has persisted. In 1953, President Dwight D. Eisenhower referred to the TVA as an example of "creeping socialism". The following year, then-film actor and later 40th President Ronald Reagan began hosting General Electric Theater , which
16159-434: The projects, especially in rural areas. The projects also inundated several Native American archaeological sites, and graves were reinterred at new locations, along with new tombstones. The available electricity attracted new industries to the region, including textile mills , providing desperately needed jobs, many of which were filled by women. A few regions of the Tennessee Valley did not receive electricity until
16302-473: The region through power generation, flood control, navigation assistance, fertilizer manufacturing, and agricultural development. Since the Depression years, it has developed primarily into a power utility. Despite its shares being owned by the federal government, TVA operates like a private corporation, and receives no taxpayer funding. The TVA Act authorizes the company to use eminent domain . TVA provides electricity to approximately ten million people through
16445-509: The region. Historians have criticized its use of eminent domain and the displacement of over 125,000 Tennessee Valley residents to build the agency's infrastructure projects. The Tennessee Valley Authority is a government-owned corporation created by U.S. Code Title 16 , Chapter 12A, the Tennessee Valley Authority Act of 1933. It was initially founded as an agency to provide general economic development to
16588-459: The same time, and design and construction employment reached a total of 28,000. In its first eleven years, TVA constructed a total of 16 hydroelectric dams. During the war, the agency also provided 60% of the elemental phosphorus used in munitions, produced maps of approximately 500,000 square miles (1,300,000 km ) of foreign territory using aerial reconnaissance , and provided mobile housing for war workers. The largest project of this period
16731-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of
16874-565: The soil was eroded and depleted. Crop yields had fallen, reducing farm incomes. The best timber had been cut, and 10% of forests were lost to fires each year. President Franklin Delano Roosevelt signed the Tennessee Valley Authority Act (ch. 32, Pub. L. 73–17 , 48 Stat. 58 , enacted May 18, 1933 , codified as amended at 16 U.S.C. § 831 , et seq.), creating
17017-551: The states includes regulation of streams and that controlling floods is required for keeping streams navigable; it also upheld the constitutionality of the TVA under the War Powers Clause , seeing its activities as a means of assuring the electric supply for the manufacture of munitions in the event of war. The argument before the court was that electricity generation was a by-product of navigation and flood control and therefore could be considered constitutional. The CEO of
17160-414: The strength of opposing interest groups also mattered. The TVA bill was able to attain passage because reformers like Norris skillfully coordinated action at potential choke points and weakened the already disorganized opponents among the electric power industry lobbyists. In 1936, after regrouping, opposing river lobbyists and members of congress who were part of the conservative coalition took advantage of
17303-529: The two at Sequoyah coming back online three years later and Browns Ferry's three reactors coming back online in 1991, 1995 and 2007. Construction of the Tellico Dam raised political and environmental concerns, as laws had changed since early development in the valley. Scientists and other researchers had become more aware of the massive environmental effects of the dams and new lakes, and worried about preserving habitats and species. The Tellico Dam project
17446-591: The two plants would reduce its carbon output by about 4.4% annually. TVA announced in April 2021 plans to completely phase out coal power by 2035. The following month, the board voted to consider replacing almost all of their operating coal facilities with combined-cycle gas plants. Such plants considered for gas plant redevelopment include the Cumberland, Gallatin, Shawnee, and Kingston facilities. In early February 2020, TVA awarded an outside company, Framatome , several multi-million-dollar contracts for work across
17589-496: The war effort. However, the abundance of TVA power was one of the major factors in the decision by the U.S. Army to locate uranium enrichment facilities in Oak Ridge, Tennessee , for the world's first atomic bombs . This was part of an effort codenamed the Manhattan Project . By the end of World War II, TVA had completed a 650-mile (1,050 km) navigation channel the length of the Tennessee River and had become
17732-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and
17875-624: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in
18018-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among
18161-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject
18304-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did
18447-423: Was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered the beginning of the Depression. The Depression
18590-413: Was completed in 2015 at a cost of more than $ 1 billion, was the largest industrial spill in United States history, and considered one of the worst environmental disasters of all time. A 2009 report by engineering firm AECOM found a number of inadequate design factors of the ash pond were responsible for the spill, and in August 2012, TVA was found liable for the disaster by the U.S. District Court for
18733-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of
18876-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing
19019-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by
19162-646: Was initially delayed because of concern over the snail darter , a small ray-finned fish which had been discovered in the Little Tennessee River in 1973 and listed as an endangered species two years later. A lawsuit was filed under the Endangered Species Act and the U.S. Supreme Court ruled in favor of protecting the snail darter in Tennessee Valley Authority v. Hill in 1978. The project's main motive
19305-446: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened
19448-477: Was modeled off of TVA, but did not gain approval. In order to provide the power for essential industries during World War II , TVA engaged in one of the largest hydropower construction programs ever undertaken in the U.S. This was especially important for the energy-intensive aluminum industry, which was used in airplanes and munitions. By early 1942, when the effort reached its peak, 12 hydroelectric plants and one coal-fired steam plant were under construction at
19591-523: Was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on the stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until
19734-470: Was sponsored by General Electric (GE). He was fired in 1962 after publicly referring to the TVA, which was a major customer for GE turbines, as one of the problems of "big government". Some claim that Reagan was instead fired due to a criminal antitrust investigation involving him and the Screen Actors Guild . However, Reagan was only interviewed; nobody was actually charged with anything in
19877-473: Was the Fontana Dam . After negotiations led by then-Vice President Harry Truman , TVA purchased the land from Nantahala Power and Light, a wholly owned subsidiary of Alcoa , and built Fontana Dam. Also in 1942, TVA's first coal-fired plant, the 267-megawatt Watts Bar Steam Plant , began operation. The government originally intended the electricity generated from Fontana to be used by Alcoa factories for
20020-401: Was the first new nuclear reactor to enter service in the United States in the 21st century. On December 22, 2008, an earthen dike impounding a coal ash pond at TVA's Kingston Fossil Plant failed, releasing 1.1 billion US gallons (4,200,000 m ) of coal ash slurry across 300 acres (1.2 km ) of land and into two tributaries of the Tennessee River. The spill, of which cleanup
20163-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that
20306-477: Was to support recreational and tourism development, unlike earlier dams constructed by TVA. Land acquired by eminent domain for the Tellico Dam and its reservoir that encountered minimal inundation was sold to private developers for the construction of present-day Tellico Village , a planned retirement community . The inflation crises of the 1970s and early 1980s, combined with the cancellation of several of
20449-507: Was used against him in a TV ad by Doyle Dane Bernbach for then-President Lyndon B. Johnson 's 1964 campaign , which depicted an auction taking place atop a dam and promised that Johnson would not sell TVA. The TVA has faced multiple constitutional challenges. The United States Supreme Court ruled TVA to be constitutional in Ashwander v. Tennessee Valley Authority (297 U.S. 288) in 1936. The Court noted that regulating commerce among
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