This image depicts Anti-New Deal sentiment. This cartoon accuses Roosevelt of spending beyond his means to deal with the Depression. The primary point of criticism of the New Deal is that it increased the deficit of the US government due to massive spending to bolster the economy. The Government ran large deficits (kind of like now after the Great Recession), which had to be financed by increased taxes and/or borrowing, leading to national debt reaching all-time highs. The government spending in 1916 was $697 million, while in 1935 the government spending was $9 billion. Which shows massive increase in Govt. expenditures.
that Cartoon is Great!
Love the Keynesian reference that it implies.
The New Deal is something to be tested on. Without a doubt the New Deal played a major role in relieving the Great Depression as it created welfare programs at the expense of the government. Some of the programs are still running today such as the Social Security System (SSS) and the Securities Exchange Commission (SEC).
The New Deal Deal should be on the midterm because it has a peculiar relevance to the Obama period, that we are going through right now. Just like Great Depression is often compared to the “after-financial-crisis” economic recession that we are experiencing right now, the New Deal, with all its ramifications, is in many ways similar to the policies of President Obama. So there is a potential for very valuable lessons.