Question

What was “Roosevelt’s recession”?

Answer 1

The Recession of 1937, often called the Roosevelt Recession, was a sharp economic downturn in the United States in 1937-38. It was part of the Great Depression in the United States, and had serious political results, and helped strengthen the new Conservative Coalition led by Senators Robert A. Taft and Richard B. Russell. Economic historians have not agreed on the causes, but many of the causes show that because the New Deal involved spending money from the Federal budget, President Roosevelt had to end New Deal spending, and thus programs, as a result.

In 1937, Roosevelt began to scale back deficit spending, because he believed that the worst of the Great Depression had passed and because he was receiving pressure from conservatives in Congress (and even from ardent New Dealers in his own cabinet). The size of the Works Progress Administration, for example, was severely reduced, as were agricultural subsidies.

This decision to cut back spending turned out to be premature, however, as the economy buckled again, resulting in what became known as the Roosevelt Recession. The stock market crashed for a second time in 1937, and the price of consumer goods dropped significantly. Contrary to conservative beliefs, the economy simply had not pulled far enough out of the depression to survive on its own. The embattled Roosevelt only made himself look worse by trying to place the blame on spendthrift business leaders. The American people were not convinced, and as a result, Democrats lost a significant number of seats in the House and Senate in the 1938 congressional elections. This return of Republican power effectively killed the New Deal.

Answer 2

it was a recession that is not as will known because it was right before the great stock market crash of 1929 and the great depression

Answer 3

it brought about an uncommonly sharp economic downturn during the depression recovery period.