Tennessee Valley Authority Act - Research Paper Example

?The Effect of the TVA on the Working Poor of the Tennessee River Valley Introduction The Tennessee Valley ity (TVA) was developed in response to the Tennessee Valley Authority Act which was signed in 1933. The act was designed to provide a number of benefits to the area of Tennessee valley, including the planning of reforestation, assistance in development, improving navigation along the river as well as other aims. In addition to this, the TVA was given mandate to improve the well-being of people living in the basin through economic and social factors. However, the primary purpose of the authority was the construction of a dam for the production of electricity (New Deal 2003). The company is unique as it is an government owned generator of electricity (Tennessee Valley Authority 2011). Many people of the area can be termed working poor. These people and families work at least part of the year, making an income that is barely enough to survive on. Often they end up living from one pay check to the next, with a poor quality of life. The creation of TVA was not without controversy and its history shows several changes in styles, ideas and approaches, this is impacted the way that they act as a government agency, how they provide and help the people of the region and their strength as an electricity provider. Creation and Controversies Tennessee Valley Authority was created with a number of different aims in mind, and many of these were not easily accepted by the public. One of the most important factors is that the TVA is a government institution, yet operates in a market that many consider to be private only (Hargrove 1994). One key issue surrounding power generation and distribution in the 1930s was the access of rural dwellers to electricity. Around 90% of urban dwelling households had power, but only ten percent of those in rural areas did. This was largely due to the cost involved in establishing the electric lines to the isolated farmhouses. The government determined that it was their role, through TVA, to bring power to the rural community as the private power companies were not doing so. This decision was met with significant opposition, with groups believing that the government did not have the authority to compete with private business, that members of the government should not interfere with the economy, and in some cases simply that farmers had insufficient skills to play their part (New Deal 2003). The initial period, from 1933 to 1945 was one that was productive for both the company and the individuals of the region. David Lilienthal, one of the three TVA directors, became the centerpiece for the company during this period, and sold the idea of electricity to the families in the valley. In particular, he focused on the idea of a grass roots community, where there was cooperation between TVA, the community and the government. This resulted in the creation of many rural distributers of TVA power. However, this sense of purpose for the company did not last, and in 1945 the company entered a second period which ran to 1970. The company had grown significantly and was now a large energy company, and the interest in regional growth and development waned. Instead programs focused on other initiatives, such as the production of fertilizer for industry, rather than the farms of the area and the provision of power to many locations external to the valley. In the period of 1970 to 1988 there were attempts to revive the company’s image but these met with failure (Hargrove 1994). Currently, TVA remains a government owned generator of electricity, providing electricity for nine million people. The fact that TVA is not a private company means that it is able to offer cheaper electricity than other providers. This is accomplished by using the money generated by the business to run it, and pricing power for what is required to run the agency, not to turn a certain profit. In August of 2010, the company announced a renewed vision to help focus the Tennessee Valley region, and the nation in general towards cleaner energy futures. This involved a shift away from coal based energy generation and more on nuclear power. The TWA website boasts of the environmental and energy work that they are involved in but makes no mention of any initiatives regarding the people of the region (Tennessee Valley Authority 2011). Effect on the Working Poor The working poor are a particularly prevalent class in the rural South. These are individuals who work for at least part of the year, often with little in the way of marketable skills, and who earn barely enough to survive on. They are sometimes defined as earning less than a certain percentage of the poverty level and working part of the year. While many families and individuals that fall into this category manage to provide for themselves week from week, their quality of life is often low, and they may be living from one pay check to the next (Rupured 2000). The working poor are often under skilled and lack the information and training to find a better job. For many of these people they need help in the form of assistance with information, help in developing marketable skills and to be taught how to manage their resources in a more effective manner (Rupured 2000). The South is no longer the backwater of low income and hard living that it once was, and part of this development can be attributed to TVA. Reports put the region as the second fastest growing of the country, although it still significantly lags behind other parts of the country in terms of pay rate. However the future is not bright for everyone, race still plays a significant role in what rate of pay an individual can expect to command, higher educated individuals can earn more than those with less education, and professionals are given more opportunities than workers (Rowley and Freshwater 1999). There is no denying that the presence of TVA has been beneficial for the region at many levels. The power plant employs many people, and its presence has resulted in increased growth and industry in the region (Rowley and Freshwater 1999). In the first period of its development, TVA made significant progress both in the lives of people and in the region in general. Within the first ten years of the agency’s existence electricity was present in most farm houses as well as appliances and water pumps. The company also built dams, these improved the navigability of the Tennessee river, they worked on the river channels, eliminating spring flooding from a large amount of farmland as well as the production of affordable power (Walker 1998) However, part of the founding concept for TVA was the development of the Tennessee Valley region, and helping the people and community there. There has been little action on this goal since 1945, and the current goals that the company presents are for cleaner and more efficient power, but they do not make mention of any plans to help the people, especially the working poor of the region (Hargrove 1994). Conclusion The creation of TVA was a signal of hope for many people. The agency was given the unique mandate to improve the lives of the people living in the area through both economic and social factors. The establishment and growth of the company was not without controversy, but at least initially, the company kept their mandate, and provided significant improvements to the quality of life for many people living in the valley. However, since around 1945 the agency has become more focused on its role as an energy produce and less on either the people or the region. The agency continues to provide a benefit to people of the area in respect to providing cheap power and in some cases employment; however they have not played much of a role in helping the working poor. Studies indicate that while the economy in the South is growing, there is a need for training for many individuals, as there is already large bias in terms of wage levels depending on race, amount of schooling and type of worker. TVA is not living up to its mandate of helping the people of the area, even with its recent refocus on the region; it still continues to focus on what helps it as an electricity generator. Work Cited Hargrove, E.C. Prisoners of myth: the leadership of the Tennessee Valley Authority, 1933-1990. Princeton University Press, 1994. Print, 1-10. New Deal. "TVA: Electricity for All". 2003. September 12 2011. . Rowley, T.D., and Freshwater, D. "Are Workers in the Rural South Ready for the Future?" Rural Development Perspectives 14 (1999): 27-35. Print. Rupured, M. "Promoting Upward Mobility for the Working Poor." Rural South: Preparing for the Challenges of the 21st Century (2000): 7. Print. Tennessee Valley Authority. "About TVA". 2011. September 12 2011. . Walker, M. "African Americans and TVA Reservoir Property Removal: Race in a New Deal Program." Agricultural history 72.2 (1998): 417-28. Print. Read More