How JFK’s Economic Policy Got America Moving Again

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Nov. 22 (Bloomberg) -- Bloomberg Economics Editor Michael McKee recaps the economic policy of President John F. Kennedy and the lasting impact of the record tax cut he spearheaded. He speaks on Bloomberg Television’s “In The Loop.”

Opportunism -- his economic policies ushered in what was longest -- what was the longest economic expansion in american history.

It certainly wasn't the case when kennedy took office.

Most of the people think of the 50s as an ideal time.

But kennedy inherited an economy after three recessions.

His campaign slogan was "get america moving again.

Oh unemployment rose -- america moving again." unemployment rose.

When he got into office, the thing that surprised him most was to find out things were just as bad as they were seeing they were.

His signature proposal at the time, 20% in the highest bracket.

Most of his effort was focused on the middle bracket.

There was a 14% cut for those making the median income, which was only $6,900 per year.

That is why it is not correct for many to claim that kennedy was a closet economic conservative.

His motivation was not supply in letting incomes trickle down.

He try to stimulate spending by those most likely to spend.

He was hoping to create a budget deficit, planning to increase government spending after the tax cut passed.

He also moved a number of measures that we would consider liberal today.

This included increasing the mental wage, increasing social security benefits to get people to retire earlier, and increasing highway construction.

And it worked.

It did work.

The tax cuts did not pass until after kennedy was killed.

But they did in the work.

-- did indeed work.

Unemployment fell to 3.4%. interestingly for the old supply system -- supply-side of the argument, income tax received rose 122%. we can argue about kennedy's legacy in one million different ways.

The one thing they seem to have gotten right, the short.

In office.

Flex thank you for walking us through that.

Coming up on market makers, a rare and exclusive interview with activist investor bill ackman, live from the robin hood investors conference.

Also, the second installment of the hunger games trilogy opens in theaters.

This text has been automatically generated. It may not be 100% accurate.


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