ECONOMY ACT MARCH 1933 ECONOMY ACT NEW DEAL U.S GOV'T LEGISLATIVE U.S GOVERNMENT AND CONSTITUTION ECONOMY AND LABOR CONGRESS PASSED THE ECONOMY ACT IN MARCH 1933 AS PART OF PRESIDENT FRANKLIN D ROOSEVELT'S NEW DEAL THE ACT WAS DESIGNED TO REDUCE GOVERNMENT SPENDING IN THREE WAYS FIRST IT REORGANIZED GOVERNMENT AGENCIES TO IMPROVE EFFICIENCY AND REDUCE COSTS SECOND IT CUT GOVERNMENT EMPLOYEES SALARIES BY AS MUCH AS 15 PERCENT THIRD THE LEGISLATION DECREASED VETERANS PENSIONS PARTICULARLY THE PENSIONS OF VETERANS WHO HAD DISABILITIES NOT CAUSED BY THEIR MILITARY SERVICE ROOSEVELT HOPED THAT THE ECONOMY ACT WOULD SAVE 500 MILLION WHICH COULD BE USED TO HELP FUND OTHER NEW DEAL PROGRAMS THE PRESIDENT ALSO WANTED TO DEMONSTRATE TO THE AMERICAN PEOPLE THAT THE GOVERNMENT WAS ECONOMIZING DURING THE GREAT DEPRESSION IN MARCH 1934 CONGRESS RESPONDED TO PRESSURE FROM CRITICS OF THE NEW DEAL BY PASSING THE INDEPENDENT OFFICES APPROPRIATIONS ACT OVER THE PRESIDENT'S VETO THE ACT RESTORED THE SPENDING CUTS MADE BY THE ECONOMY ACT AND MARKED THE FIRST DEFEAT FOR ROOSEVELT'S NEW DEAL
