15. The Great Depression was actually a series of recessions, interspersed with economic growth
The argument is frequently made, particularly by those who oppose the policies of Franklin Delano Roosevelt, that his efforts did nothing to end the depression, much to worsen it, and that it was World War II which brought it to a close. That argument is simplistic. The Great Depression was a series of economic downturns, the first of which was for the most part ended by 1936, when leading economic indicators had achieved the same levels as during the boom years of the preceding decade. Unemployment, still high at 11%, had nonetheless been reduced from its peak of 25% during 1933. Federal spending was at a deficit however, which critics of the president condemned as unsustainably high. In 1937 Roosevelt cut spending and raised taxes with the intent of bringing the federal budget into balance.
The result was another downturn, which was severe, and which sent repercussions around the globe via America’s trading partners. For just over a year, well into 1938, American production slumped. Manufacturing fell back to levels not seen since the worst of the depression, and unemployment again climbed to frightening levels. By the late spring of 1938 the economy again began to rebound but the sharpness of the recession emboldened FDR’s critics in Congress and the press, and attempts to create further government agencies to stimulate the economy were attacked as socialism, including the recently passed legislation which created Social Security.