Tag Archives: National Expenditures

Nice Work!

The United States’ economy took a hard strike in 1929. Since that devastating moment in history and throughout the time frame of economic struggle, the active presidents did what they could, in their opinion, to help the economy from self destructing. The Dallas Morning News’ November 25, 1933 editorial visits one of the methods used to succor the nation in times of hardship. In addition, John Knott’s political cartoon accompanies the editorial depicting Lewis Douglas, the director of the Bureau of Budget and Planning during Fredrick D. Roosevelt’s term in office, trying to cut down the national budget to save the economy. The Bureau of Budget and Planning director primarily inspects government activities, coordinate fiscal estimates, and generally control expenditures. The editorial and political cartoon render an illustration of the vigorous attempt to rescue the United States from its state of penury.

On October 29, 1929, also known as Black Tuesday, the United States fell into the worst economic period of the twentieth century when the American stock market crashed. Due to the Great Depression, banks failed, the nation’s money supply diminished, companies went bankrupt causing them to fire their workers in flocks. President Herbert Hoover urged patience and self reliance and claimed that it was not the government’s job to try and resolve the issue. Thus, 1932 was  the blackest year of the Great Depression with one-fourth of the work force unemployed. Once Franklin D. Roosevelt became the nation’s thirty-second president, he acted swiftly to try and stabilize the economy and provide jobs and relief to those suffering. As it turns out, Roosevelt actually created more problems for the government in his attempt to help and by creating the New Deal. Although, not in the beginning. At first, when Lewis Douglas was chosen as the Director of the Bureau of Budget, the nation was contempt with his plans. Douglas was an advocate of balanced budgets and limited government expenditures.

The $2,600,000,000 Budget editorial that is paired with the cartoon voices Lewis Douglas’ plan for the nation. He set a goal of two billion six hundred million dollars for normal annual expenditure by the government. This plan cuts off twenty-five percent in the figure for the fiscal year. The article also mentions how the budget director would have to deal with Congress. Since Douglas’ budget was undoubtedly astray from the normal budget, congress decided to proceed with caution as far as permitting this plan. In contrast, the article articulates that the nation’s taxpayers would love Douglas, for the budget required drastic reductions in pension programs and also economy in all offices. The budget director would not be popular in Washington, but would be worshipped by the tax-bearing citizens.

The political cartoon, Nice Work! by John Knott, a rather rugged man is shown chopping off a portion of a tree log, while another more comfortable looking man is shown sitting on the opposite end of the log. The tree log laid out on the ground is labeled ‘National Budget’ and is already partially cut through. The man holding the ax in the air getting ready to continue chopping the log is Lewis Douglas. His arm is labeled ‘Douglas’ and he is not wearing a coat and has his sleeves rolled up. Douglas is illustrated with a sweaty, frustrated, yet determined face. This portrays how Douglas was hard at work to cut down the national budget. The taxpayer sitting on the end of the log has his hand up and his mouth open as if he is alarmed by what Douglas is doing. Although the taxpayer is not showing any sign of stopping him. Taxpayers are alarmed by this proclamation that the director of budgetary is suggesting because the nation has never seen this done and they are not sure if this will necessarily help their current economy’s issues. The cartoon is ironic since the taxpayer should actually be cheering Douglas on for cutting down their taxes, rather than what Roosevelt has in store for them. The government is the one who should be worrying about this new plan when their salary will be cut down just like the tree log.

In the long run, Lewis Douglas was only awarded with a short term in the spotlight. Roosevelt later downplayed efforts to cut costs and balance the budget causing Douglas’ role to diminish. A month after signing the Economy Act on March 20, 1933 to fulfill Douglas’s expectations, Roosevelt restricted gold imports, signaling his turn toward inflationary measures. Given Roosevelt’s new change in direction for the economy, the government needed more funding than what was available so they increased taxes. The monetary extraction from hardworking America prolonged the depression. Lewis Douglas resigned which magnified the increasing divergence between what Frederick D. Roosevelt had promised during a 1932 presidential campaign and what played out to be even more problems for the economy.

Works Cited

Dickinson, Matthew J. “The BoB and Other Institutional Staff Agencies.”Bitter Harvest: FDR, Presidential Power, and the Growth of the Presidential Branch. Cambridge: Cambridge UP, 1996. 59-62. Print.

Hazlitt, Henry. “Lewis Douglas Dissects The New Deal: The Former Director of the Budget Thinks We Are Heading Toward Collectivism.”The New York Times 28 July 1935, The Liberal Tradition sec.: BR4. Print.

Patton, Mike. “A Brief History Of The Individual And Corporate Income Tax.” Forbes. Forbes Magazine, 31 Oct. 2015. Web. 06 Nov. 2015.

History.com Staff. “New Deal.” History.com. A&E Television Networks, 2009. Web. 06 Nov. 2015.

Knott, John. “Nice Job!” Cartoon. Dallas Morning News 25 Nov. 1933, 2nd ed. Print.

“$2,600,000,000 Budget” Editorial. Dallas Morning News 25 Nov. 1933, 2nd ed., sec. 2: 2. Print.