Rural Electrification Administration

Definition

The Rural Electrification Administration (REA) was a New Deal agency established in 1935 to promote and facilitate the expansion of electrical power to rural areas of the United States. By providing low-interest loans and technical assistance, the REA aimed to improve the quality of life in rural communities and boost economic development by making electricity accessible to farmers and rural residents.

5 Must Know Facts For Your Next Test

1. The REA significantly increased the number of rural households with electricity from about 10% in 1935 to over 90% by the 1950s.
2. The agency promoted the establishment of rural electric cooperatives, which allowed local communities to take control of their own electrical supply and distribution.
3. The REA's work not only improved living standards but also spurred economic activities in agriculture and rural businesses due to increased access to electric-powered tools and appliances.
4. The program faced challenges related to funding, regional disparities, and competition with private utilities, which often resisted extending services to less profitable rural areas.
5. The legacy of the REA can be seen today in the ongoing importance of rural electrification and infrastructure development as part of broader discussions about access to energy in underserved regions.

Review Questions

• How did the establishment of the Rural Electrification Administration impact rural communities in terms of economic development?
  • The establishment of the Rural Electrification Administration played a crucial role in transforming rural communities by significantly improving access to electricity. This accessibility led to enhanced living standards as households gained access to modern appliances, which increased productivity in farming and other businesses. Additionally, having electricity fostered new economic opportunities through the development of local industries, thus contributing to a more vibrant rural economy.
• Evaluate the effectiveness of the REA's strategies in promoting rural electrification compared to private utility efforts during that period.
  • The REA's strategies were highly effective in promoting rural electrification, particularly through its support for cooperative models that empowered local communities. Unlike private utilities that focused on urban areas for profitability, the REA provided financial incentives and resources specifically for underserved rural populations. This led to a rapid increase in electrification rates in rural areas that would have otherwise been neglected by private companies, showcasing the importance of public intervention in achieving equitable access to services.
• Assess the long-term social consequences of rural electrification initiated by the REA on American society.
  • The long-term social consequences of rural electrification initiated by the REA have been profound, as it not only transformed daily life for millions but also reshaped social dynamics within rural communities. Access to electricity facilitated better education through lighting and technology, improved health care with enhanced medical facilities, and fostered a sense of community empowerment through local cooperatives. The lasting impact is evident today as these electrified communities continue to benefit from increased economic opportunities and an improved quality of life that originated from this pivotal initiative.

Related terms

New Deal: A series of programs and reforms introduced by President Franklin D. Roosevelt in response to the Great Depression, aimed at economic recovery and social reform.

Cooperative: An organization owned and operated by a group of individuals for their mutual benefit, often used in the context of rural electric cooperatives formed to provide electricity to underserved areas.

Electricity Generation: The process of producing electric power from various energy sources, including fossil fuels, nuclear energy, and renewable resources, which was crucial for expanding access to electricity.