Friday, March 25, 2016

JFK on Economics

JFK's greatest success economically was championing a policy of lowering tax rates on average earners. This unfortunately was only realized after his death with the passing of the bipartisan Revenue Act of 1964. His approach was neither that of a strict Keynesian nor that of a supply-sider but hogged the midpoint with the intent of increasing demand via disposable income. It worked. The mid 60's was a Golden Era in US Economic history. Unemployment sat at a low of 3.8 % in 1966. GDP growth was in the 5% range. You are correct Nixon's record is poor but it wasn't all of his doing. The ongoing Vietnam War impacted the Federal budget. It also didn't help that he introduced wage and price controls to curb the inflation that resulted from Johnson's Great Society spending Initiatives.
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