What is the primary reason for the U.S. government's use of deficit spending after the Great Depression?

The primary reason for the U.S. government's use of deficit spending following the Great Depression was to stimulate economic growth. During this period, the economy faced severe contraction, high unemployment, and deflation. The government needed to take proactive measures to revive the economy and restore public confidence.

By engaging in deficit spending, the government injected financial resources into the economy through various programs and projects, such as the New Deal initiatives. These efforts aimed to create jobs, support industries, and increase consumer purchasing power. The rationale behind this approach stems from Keynesian economic principles, which advocate for government intervention during economic downturns to boost aggregate demand and foster recovery.

Historically, the Great Depression highlighted the limitations of a purely laissez-faire approach to economics, demonstrating that in times of crisis, government spending can play a crucial role in revitalizing an ailing economy. The emphasis on stimulating economic growth through deficit spending was key to moving the country toward recovery and mitigating the impacts of the Depression.