Changes

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.  

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 oversaw spending programs with no regard for economic utility to meet the immediate political necessities of an election, but the growth of debt could not go on indefinitely. And the New Dealers problem was complicated by pressure from within thew Democratic party to balance the budget.

[[Image:Flatgrowth.JPG|thumb|300px|right|Real Output and Growth remained stagnant throughout the New Deal largely due to government involvement. The Depression came back with a vengeance in 1937-1938.<ref>''New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis, ''Harold L. Cole and Lee E. Ohanian, Journal of Political Economy, volume 112 (2004), pages 779–816.</ref>]]

[[Image:Flatgrowth.JPG|thumb|300px|right|Real Output and Growth remained stagnant throughout the New Deal largely due to government involvement. The Depression came back with a vengeance in 1937-1938.<ref>''New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis, ''Harold L. Cole and Lee E. Ohanian, Journal of Political Economy, volume 112 (2004), pages 779–816.</ref>]]

New capital made available for investment amounted to $348,000,000 in 1935. This was less than 1/10th of the amount available in 1929.  By contrast, the British economy had nearly recovered to its 1929 levels by 1935, and the amount available for investment was almost twice as much as the United States.

New capital made available for investment amounted to $348,000,000 in 1935. This was less than 1/10th of the amount available in 1929.  By contrast, the British economy had nearly recovered to its 1929 levels by 1935, and the amount available for investment was almost twice as much as the United States.