<P> In 1929 the Hoover administration responded to the economic crises by temporarily lowering income tax rates and the corporate tax rate . At the beginning of 1931, tax returns showed a tremendous decline in income due to the economic downturn . Income tax receipts were 40% less than in 1930 . At the same time government spending proved to be a lot greater than estimated . As a result, the budget deficit increased tremendously . While Secretary of the Treasury Andrew Mellon urged to increase taxes, Hoover had no desire to do so since 1932 was an election year . In December 1931, hopes that the economic downturn would come to an end vanished since all economic indicators pointed to a continuing downward trend . On January 7, 1932, Andrew Mellon announced that the Hoover administration would end a further increase in public debt by raising taxes . On June 6, 1932, the Revenue Act of 1932 was signed into law . </P> <P> Roosevelt won the 1932 presidential election promising to promote recovery with a New Deal for the American people . He enacted a series of programs, including Social Security, banking reform, and suspension of the gold standard . The majority of historians and economists argue that the New Deal was beneficial to recovery, however some argue that it prolonged the Great Depression . </P> <P> In a survey of economic historians conducted by Robert Whaples, Professor of Economics at Wake Forest University, anonymous questionnaires were sent to members of the Economic History Association . Members were asked to either disagree, agree, or agree with provisos with the statement that read: "Taken as a whole, government policies of the New Deal served to lengthen and deepen the Great Depression ." While only 6% of economic historians who worked in the history department of their universities agreed with the statement, 27% of those that work in the economics department agreed . Almost an identical percent of the two groups (21% and 22%) agreed with the statement "with provisos" (a conditional stipulation), while 74% of those who worked in the history department, and 51% in the economic department disagreed with the statement outright . </P> <P> According to Peter Temin, Barry Wigmore, Gauti B. Eggertsson and Christina Romer the biggest primary impact of the New Deal on the economy and the key to recovery and to end the Great Depression was brought about by a successful management of public expectations . Before the first New Deal measures people expected a contractionary economic situation (recession, deflation) to persist . Roosevelt's fiscal and monetary policy regime change helped to make his policy objectives credible . Expectations changed towards an expansionary development (economic growth, inflation). The expectation of higher future income and higher future inflation stimulated demand and investments . The analysis suggests that the elimination of the policy dogmas of the gold standard, balanced budget and small government led to a large shift in expectation that accounts for about 70--80 percent of the recovery of output and prices from 1933 to 1937 . If the regime change would not have happened and the Hoover policy would have continued, the economy would have continued its free fall in 1933, and output would have been 30 percent lower in 1937 than in 1933 . </P>

Which of these is related to the great depression