Budget Balancing vs. Pump Priming

November 20, 1937

Report Outline
The Administration and the Business Slump
Extent of Current Business Recession
Progress Toward Balancing the Budget
Government Pump Priming and Recovery
Special Focus

The Administration and the Business Slump

President Roosevelt in his message to the special session of Congress, November 15, conceded that the current business slump, in so far as it had the effect of decreasing the national income, was “a matter of definite concern,” but he insisted that “with the exercise of ordinary prudence, there is no reason why we should suffer any prolonged recession, let alone any general economic paralysis.” The message displayed a conciliatory tone toward business, stressing the consideration now being given by the government to elimination of injustices in the tax laws, to stimulation of the construction industry, and to solution of problems of the railroads and of other public utilities.

Obviously [he said] an immediate task is to try to increase the use of private capital to create employment. Private enterprise, with cooperation on the part of the government, can advance to higher levels of industrial activity than those reached earlier this year.

Such an advance, the President observed, would assure balanced budgets, and he said he expected the budget for the fiscal year 1939 “can be brought within a definite balance.” At the same time, he warned that “if private enterprise does not respond, government must take up the slack.”

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Sep. 01, 2017  National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
Deficit, Federal Debt, and Balanced Budget
Economic Crises
Economic Development