Shrieks about how the deficit would hurt the economy were also loud and demanding in the midst of the Great Depression, when far greater credence was given to the conventional economic wisdom of the day. So, in response, FDR, in 1936, slashed spending on public works and the first Social Security taxes took effect and guess what happened?

From his inauguaration in the Spring of 1933 until late 1936, the US GDP soared 50% and manufacturing was back to the 1929 levels. But then, the 'cure' espoused by the 1930's deficit hawks took effect, and in 1937 the economy got slammed by a severe recession.

When FDR repented of the folly of listening to the 'deficit hawks,' including Henry Morgenthau, and resumed New Deal programs and spending, the economy swiftly rebounded. But the damage had been done. The Depression lasted two more years than it should have. Had FDR stuck his fingers in his ears instead of listening to the deficit hawks of his day, the US economy would have been booming by 1940, if not sooner.