The following sections of this BookRags Literature Study Guide is offprint from Gale's For Students Series: Presenting Analysis, Context, and Criticism on Commonly Studied Works: Introduction, Author Biography, Plot Summary, Characters, Themes, Style, Historical Context, Critical Overview, Criticism and Critical Essays, Media Adaptations, Topics for Further Study, Compare & Contrast, What Do I Read Next?, For Further Study, and Sources.
(c)1998-2002; (c)2002 by Gale. Gale is an imprint of The Gale Group, Inc., a division of Thomson Learning, Inc. Gale and Design and Thomson Learning are trademarks used herein under license.
The following sections, if they exist, are offprint from Beacham's Encyclopedia of Popular Fiction: "Social Concerns", "Thematic Overview", "Techniques", "Literary Precedents", "Key Questions", "Related Titles", "Adaptations", "Related Web Sites". (c)1994-2005, by Walton Beacham.
The following sections, if they exist, are offprint from Beacham's Guide to Literature for Young Adults: "About the Author", "Overview", "Setting", "Literary Qualities", "Social Sensitivity", "Topics for Discussion", "Ideas for Reports and Papers". (c)1994-2005, by Walton Beacham.
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During the Great Depression of the 1930s British economist John Maynard Keynes (1883–1946) proposed that massive deficit spending (government spending more than it receives in revenues) could successfully end an economic downturn and produce prosperity. Under this plan, increased government spending would replace decreased consumer spending and private investment. Though President Franklin D. Roosevelt had greatly increased federal spending on various relief programs to ease the suffering of the American people, he was unwilling to pursue the amount of spending Keynes suggested. Roosevelt feared Keynes could be wrong and that economic problems could be worsened by large government debts.
World War II provided an occasion to test Keynes's ideas on the home front; despite his reluctance to increase federal spending, Roosevelt had no choice but to spend huge amounts on the war effort. As government spending rose from $9 billion in 1939 to $98 billion in 1945, unemployment fell sharply from 15 percent in 1940 to just over 1 percent in 1944. Incomes rose, industries boomed, and nearly all Americans enjoyed a higher standard of living. The success of deficit spending during the war made a lasting impression on the country and its leaders. Although some people remained critical of deficit spending, most Americans began to see it as an acceptable method of managing the home front economy.