Balancing the budget might...
  • Appease Business Community
  • Placate Congressional Conservatives
  • Possibly influence Economy for the better...
  • Build national unity in the face of international problems
 ...but it required cuts to
  • Relief,
  • Public Works,
  • Pump-Priming programs,
  • Etc.
...which might damage confidence in the economic recovery...
 
 Impact on the economy...
  • Recovery stalls further
  • Confidence declines
  • Unemployment worsens
 Wider Impact...
  • Muddled the New Deal.
  • 1938 Republicans Gain 6 seats in the Senate and 81 in the House
  • Greater independence on the left of the New Deal.