Changes

==Crash of 1937==

==Crash of 1937==

As hopes for the Second New Deal faded with the onset of the [[Recession of 1937]], a book appeared in early 1938 entitled, "An Economic Program for American Democracy''which postulated, "The government must assume full responsibility for maintaining national income at a sufficiently high level to assure full utilization of our human and material resource...The notion that public spending can be safely resorted to as a temporary emergency device must be abandoned."  

As hopes for the Second New Deal faded with the onset of the [[Recession of 1937]], a book appeared in early 1938 entitled, ''An Economic Program for American Democracy'' which postulated, "The government must assume full responsibility for maintaining national income at a sufficiently high level to assure full utilization of our human and material resource...The notion that public spending can be safely resorted to as a temporary emergency device must be abandoned."  

Tugwell and [[Leon Henderson]] claimed the first two incarnations of the New Deal failed because government intervention had been on a far too modest scale. Instead of spending three billion a year, for which Roosevelt was being criticized, Tugwell said FDR should have spent twelve billion a year. President Roosevelt was delighted with the advice.

Tugwell and [[Leon Henderson]] claimed the first two incarnations of the New Deal failed because government intervention had been on a far too modest scale. Instead of spending three billion a year, for which Roosevelt was being criticized, Tugwell said FDR should have spent twelve billion a year. President Roosevelt was delighted with the advice.