Fixing the Great Depression with Franklin D. Roosevelt

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When Franklin D. Roosevelt’s administration was tasked with fixing the issues of the Great Depression the first step they took was creating programs to assist those in need. Although his programs pulled the United States out of the Great Depression they would prove to be a Pandora’s Box. Once the country was out of the depression these relief programs remained even when they were not needed. These programs would drain money from the Government and eventually lead to the bulk of the economic issues faced in recent years. Although these programs had a time and a place they eventually caused more harm then they helped. The New Deal made Roosevelt face an issue that no other President had to face before, how to finance hundreds of new programs. The programs were financed by tripling federal taxes from $1.6 billion to $5.3 billion over a period of seven years. Excise taxes, inheritance taxes, corporate income taxes, personal income taxes, holding company taxes and excess profits taxes all went up. Excess Taxes are a type of Tax that is primarily used during war times to capture profits that exceeded normal peacetime profits. By increasing the tax rates and imposing new taxes in an attempt to help the economy Roosevelt actually hurt the recovery of the economy. The taxes took additional profits made from the war away from the people who earned them. The increase in profits would have put more money in the hands of the consumers who would have stimulated growth of the
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