Tennessee Valley Authority (TVA)

Definition

The TVA was a federal corporation established in 1933 to construct dams and power plants in the Tennessee Valley region to generate electricity as well as to prevent floods.

Analogy

Think of the TVA like a massive, government-funded construction company. Just like how a construction company might build houses in an underdeveloped area, the TVA built infrastructure in the Tennessee Valley to help stimulate economic growth and development.

Related terms

New Deal: A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt between 1933 and 1939 designed to help the U.S recover from the Great Depression.

Public Works Administration (PWA): New Deal agency that provided millions of jobs constructing public buildings during the Great Depression.

Rural Electrification Administration (REA): Provided affordable electricity for isolated rural areas that could not afford private power companies' line installation costs.