11. The New Deal was not a tax and spend series of programs
Conservative opposition to the proposals and programs of the New Deal often argued that it was little more than increased taxation on businesses and the wealthy, to provide funds for spending which expanded federal power. They also accused Roosevelt of borrowing recklessly against the American future (deficit spending) in order to fund his socialist liberal policies and programs. When Roosevelt took office, immediate necessity was so dire that deficit spending was mandatory. Toward the end of the decade, with Japan at war in China and Germany at war in Europe, increased defense spending was also mandated.
Throughout Roosevelt’s first three terms, deficit spending was kept closely under control in the budgets submitted to congress. In 1937 the budget proposed by FDR was actually balanced, though the downturn which affected the economy that year generated an increase in some spending programs. Throughout the lifetime of the New Deal (1933-1941), annual deficits averaged just below 3% of GDP. By comparison, budget deficits averaged just over 4% of GDP for the eight years of the Reagan Administration. Many New Deal programs, adjusted and amended over time, remain a significant part of America’s social and economic fabric.