Changes

===Unemployment worse than in 1933===

===Unemployment worse than in 1933===

In January 1938, John D. Biggers in a study commissioned by President Roosevelt reported back there were 10,870,000 people out of work, more than when FDr took office in 1933.  

In January 1938, John D. Biggers in a study commissioned by President Roosevelt reported there were 10,870,000 people out of work, more than when FDR first took office in 1933.  

<ref>[http://www.time.com/time/magazine/article/0,9171,758790,00.html ''Two Schemes''], Time magazine, Jan. 10, 1938.</ref> Roosevelt realized that all the “pump priming” and spending $17 billion had failed. Despite the billions added to the debt, the Depression was back and Roosevelt was at the center of a tug-of-war with advocates of spending like [[Harry Hopkins]], [[Leon Henderson]] and [[Rex Tugwell]] on one side, and opponents like [[Henry Morgenthau]] on the other.  

<ref>[http://www.time.com/time/magazine/article/0,9171,758790,00.html ''Two Schemes''], Time magazine, Jan. 10, 1938.</ref> Roosevelt realized that all the “pump priming” and spending $17 billion had failed. Despite the billions added to the debt, the Depression was back and Roosevelt was at the center of a tug-of-war with advocates of spending like [[Harry Hopkins]], [[Leon Henderson]] and [[Rex Tugwell]] on one side, and opponents like [[Henry Morgenthau]] on the other.  

DNC Chairman [[Jim Farley]] reported on a talk with Roosevelt on March 28, 1938. FDR told Farley he would have "to go in for pump priming or relief," but FDR complained he could not spend on local projects because the states and cities did not want any more buildings and institutions which they would have to pay for in perpetuity. States anad localities were having trouble paying the bills on New Deal projects already built. Many [[WPA]] projects approved by the federal government were abandoned because the states and cities could not raise the money to support them.  

DNC Chairman [[Jim Farley]] recalled on a meeting with Roosevelt on March 28, 1938. FDR told Farley he would have "to go in for pump priming or relief," but complained he could not spend on local projects because the states and cities did not want any more buildings and institutions which they would have to pay for in perpetuity. States and localities were having trouble paying the bills on New Deal projects already built. Many [[WPA]] projects approved by the federal government were abandoned because the states and cities could not raise the money to support and occupy them.  

In the 1938 Congressional elections Harry Hopkins was spending as fast as he could with no regard to utility to meet the immediate political necessities of an election but the situation couldn't go on indefinitely. And the problem was complicated by pressure from within thew Democratic party to balance the budget.

In the 1938 Congressional elections Harry Hopkins was spending as fast as he could with no regard to utility to meet the immediate political necessities of an election but the situation couldn't go on indefinitely. And the problem was complicated by pressure from within thew Democratic party to balance the budget.