What is the Economy Act?

The Economy Act of 1933 was legislation aimed at reducing government spending during the Great Depression by allowing federal agencies to transfer funds between accounts to meet budgetary needs. It authorized the government to consolidate and streamline operations, thereby promoting efficiency in federal spending. The Act also provided the framework for various cost-saving measures, including the reduction of federal employee salaries and the restructuring of government programs. Overall, it was a key component of the New Deal efforts to stabilize the economy.