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The primary thing that caused federal spending in the United States to increase from 1928 through 1939 was a desire to get out of the Great Depression. Because many Americans had lost all their money, it was imperative that the government help restore the economy.

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Q: What caused the Federal Spending through 1928-1939 to increase?
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What methods could the federal government use to stimulate the economy during a time when people were opposed to deficit spending?

The only way the federal government can lower taxes without contributing to a greater deficit is by cutting spending as well. This may either cause an increase in federal revenues through increased taxable income in a growing economy or have little to no effect in stimulating economic growth. The other way to stimulate the economy without increasing the deficit is eliminating regulations that create hurdles to businesses starting up and growing.


How does the federal reserve buy and sell government securities?

This is called open market operations, they do this to increase the money supply, buy buying bonds or decrease the money supply by selling. They do this to control interest rates and inflation.


How did Kennedy stimulate the economy?

John F. Kennedy stimulated the economy through his "New Frontier" domestic program. It included federal aid for education, student loans, and economic assistance to depressed areas. Kennedy also enacted $10 billion in tax cuts that increased revenues.


How best to manage economic down turn?

Your question is a big one. Economic downturn is when the economy's demand is low, which leads to the relatively inactive economy. To manage this, the government will try to stimulate the economy directly (by increase government spending) or indirectly (through tax, regulations, policies) so the demand raise.


What is the most important source of revenue for the federal budget?

Through taxes

Related questions

What methods could the federal government use to stimulate the economy during a time when people were opposed to deficit spending?

The only way the federal government can lower taxes without contributing to a greater deficit is by cutting spending as well. This may either cause an increase in federal revenues through increased taxable income in a growing economy or have little to no effect in stimulating economic growth. The other way to stimulate the economy without increasing the deficit is eliminating regulations that create hurdles to businesses starting up and growing.


How do Keynesian economics and supply-side economics compare and contrast?

Keynesian economics uses government to increase aggregate demand through both spending and tax cuts. Supply-side economics tries to increase aggregate supply through tax cuts.


Has the enactment of medicare and medicaid resulted in greater government federal or state spending?

There is no doubt that the enactment of Medicaid has resulted greater federal and state spending. However, the alternative would have been a much less healthy population in the U.S.The states have no role to speak of in administering Medicare. As far as I know, that program has been able to fund itself, so far, through insurance payments from employers and employees.


How does politics affect businesses in Canada?

Federal politicians determine large government spending programs, so they could affect businesses through their decisions regarding taxes, regulations, registration, fees, etc.


What is the cost to the tax payers for NASA?

In 2009 the Federal Government spent $17.4 billion on NASA. This translates to only one-half of one percent (0.5%) of all federal spending. Most Americans spent less than $9 on NASA through personal income tax in 2009.


How is mandatory and discretionary spending similar?

Mandatory spending - Spending that the Government must spend. Discretionary spending - Spending category through which governments can spend through an appropriations act.


Who must the president receive approval from before spending money?

The president must receive approval from Congress before spending money. Specifically, this approval is granted through the passage of a federal budget or appropriations bills.


Is the cost of my spouse's insurance premium reimbursable through my flexible spending account?

Yeah, the cost simply reimbursable through your flexible spending account. I guess that that's just reality


How much does NASA cost?

In 2009 the Federal Government spent $17.4 billion on NASA. This translates to only one-half of one percent (0.5%) of all federal spending. Most Americans spent less than $9 on NASA through personal income tax in 2009 (source http://nasacost.com).


What are the three ways in which the strength of induced emf in electric generator can be increased?

Increase the current, increase the windings and increase the metal core mass.


Does light increase or decrease through a clear glass?

Increase


Can a president delay congressional spending?

Yes a president has the authority to delay congressional spending. The president has the power to veto legislation which may include legislation that sets appropriations for federal agencies or programs. A presidential veto of a spending bill can prevent congressional spending from taking effect. The president can also delay the spending through a line-item veto which allows the president to veto individual items within a spending bill. Additionally the president can refuse to spend money that Congress has already appropriated. This is known as a rescission and requires the president to notify Congress of his intention to delay the spending. The following steps are necessary for a president to delay congressional spending: The president must veto the spending bill. The president can veto individual items within a spending bill using a line-item veto. The president can refuse to spend money that Congress has already appropriated by issuing a rescission. The president must notify Congress of his intention to delay the spending.These steps provide the president with the authority to delay congressional spending.