GOVERNMENT: Immature Economy

A prime theorem of many New Deal ideologists is that the U. S. economy is mature, past its years of automatic growth. According to this view, frontiers can no longer be depended on to absorb the country's excess capital—the only way to keep the economy going is by heavy taxes on savings and surpluses, to recirculate wealth through a widening program of Federal works. Leader of this school of thought (called the "deficiency school" because it thinks the private outlets for new investment are deficient) is Economist Alvin Hansen of Harvard.


Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!