Massive Federal Spending: Both President Roosevelt in the Great Depression and President Obama in the great recession responded to the crises in a similar manner. They worked for the balancing of the deferral budget but they continued to do massive spending (Almunia et al, 2010). Some of the earlier presidents such as Cleveland and Harding had brought down the overall federal spending whenever there was economic hardship in the nation. Hoover was the president who was elected during the transition phase. He ran deficits by doing the huge spending on the public works and by launching a large number of federal farm programs. The result of the same was budget deficits and the unemployment to around 25 percent. President Roosevelt decided that the federal spending would help in the expansion of the economy and would help in pulling the nation out of the economic slump. Then, President Roosevelt launched the Agriculture Adjustment Program (AAA).
Under this program, the farmers had been paid not to produce crops. In a move, he expanded the Hoover’s Reconstruction Finance Corporation which helped in providing the bailout money to the large number of banks and the corporations. He also supported the spending on many of the public works and also targeted large number of subsidies to a huge interest (Temin, 1991). President Obama also took a similar move by signing into law an amount of around $787 which led to the sending of tax dollars to many cities and voting groups in the entire nation. He also supported the Jobs Bill which led to the increasing the transfer of money to some of the key congressional districts. He further campaigned for the cap and trade bill and also for the universal health coverage which promised to increase in the federal debts by a large amount. This led to the doubling of the federal debt.