Congress passes the Banking Act of 1935, the Emergency Relief Appropriation Act, the National Labor Relations Act, and the Social Security Act. Top tax rate raised to 79 percent . The Supreme Court declares the National Labor Relations Board to be unconstitutional. Roosevelt seeks to enlarge and therefore liberalize the Supreme Court. This attempt not only fails, but outrages the public.
Economists attribute economic growth so far to heavy government spending that is somewhat deficit.
Roosevelt, however, fears an unbalanced budget and cuts spending for 1937. That summer, the nation plunges into another recession. Despite this, the yearly GNP rises 5.0 percent, and unemployment falls to 14.3 percent. No major New Deal legislation is passed after this date, due to Roosevelt's weakened political power. The Depression is ending worldwide as nations prepare for the coming hostilities.