In the early 1930s British economist [[John Maynard Keynes]] introduced the theoretical model of how government spending can help an economy out of a severe recession like the [[Great Depression]]. President [[Herbert Hoover]] had engaged in a massive stimulus spending program that came close to bankrupting state and local governments as the economy continued to spiral downward 1929-32. However, Hoover '''raised''' taxes, which economists agree was bad medicine. The [[New Deal]] engaged in massive stimulus spending which to a large extent did stimulate the economy and brought it back to levels of the mid 1920s, but did not end high unemployment. | In the early 1930s British economist [[John Maynard Keynes]] introduced the theoretical model of how government spending can help an economy out of a severe recession like the [[Great Depression]]. President [[Herbert Hoover]] had engaged in a massive stimulus spending program that came close to bankrupting state and local governments as the economy continued to spiral downward 1929-32. However, Hoover '''raised''' taxes, which economists agree was bad medicine. The [[New Deal]] engaged in massive stimulus spending which to a large extent did stimulate the economy and brought it back to levels of the mid 1920s, but did not end high unemployment. |