The End of Balanced Budgets
The government grew in size, scope, and responsibility during the Great Depression. By the end of World War II, the dominate position of public policy was that the government had a formal role in promoting economic outcomes. As the government grew to take on new roles, a reorganization became necessary. The new budgeting institutions, in particular the Bureau of the Budget, took on additional responsibilities. Congress and the White House also formerly engaged in a comprehensive policy to replace tariffs with taxes to finance federal spending but also to manage individual behavior. At the same time, the government came to be seen as having an active role in the economy. This was exemplified by the New Deal programs and the Employment Act of 1946.
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