History The Great Depression Questions
The decline in government spending during the Great Depression was primarily caused by a decrease in tax revenue due to high unemployment rates and a decrease in consumer spending. As a result, the government had less money to allocate towards public programs and initiatives.
The effects of this decline in government spending were significant. It led to a decrease in public investment, which further exacerbated the economic downturn. The lack of government spending also meant that there were fewer funds available for social welfare programs, leaving many individuals and families without support during a time of great need. Additionally, the decline in government spending contributed to a decrease in overall economic activity and prolonged the duration of the Great Depression.