03/21/11

Time to Stimulate the Economy

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.