"The work goes on, the cause endures, the hope still lives and the dream shall never die"
Senator Edward M. Kennedy
JFK was a liberal. If you hated Teddy's politics, you would have hated Jack and Bobby's too. Ted dedicated his public life to carrying out his two brother's unfinished agenda.
The Great Society was based on our slain President's New Frontier. The following were President Kennedy's agenda and proposals:
Civil Rights Bill
Medicare
War on Poverty
And JFK did not believe in trickle down economics.
JFK, the demand-side tax cutter
"The Revenue Act of 1964 was aimed at the demand, rather than the supply, side of the economy," said Arthur Okun, one of Kennedy's economic advisers.
This distinction, taught in Economics 101, seldom makes it into the Washington sound-bite wars. A demand-side cut rests on the Keynesian theory that public consumption spurs economic activity. Government puts money in people's hands, as a temporary measure, so that they'll spend it. A supply-side cut sees business investment as the key to growth. Government gives money to businesses and wealthy individuals to invest, ultimately benefiting all Americans. Back in the early 1960s, tax cutting was as contentious as it is today, but it was liberal demand-siders who were calling for the cuts and generating the controversy.
When Kennedy ran for president in 1960 amid a sluggish economy, he vowed to "get the country moving again." After his election, his advisers, led by chief economist Walter Heller, urged a classically Keynesian solution: running a deficit to stimulate growth. (The $10 billion deficit Heller recommended, bold at the time, seems laughably small by today's standards.) In Keynesian theory, a tax cut aimed at consumers would have a "multiplier" effect, since each dollar that a taxpayer spent would go to another taxpayer, who would in effect spend it again—meaning the deficit would be short-lived.
At first Kennedy balked at Heller's Keynesianism. He even proposed a balanced budget in his first State of the Union address. But Heller and his team won over the president. By mid-1962 Kennedy had seen the Keynesian light, and in January 1963 he declared that "the enactment this year of tax reduction and tax reform overshadows all other domestic issues in this Congress."
The plan Kennedy's team drafted had many elements, including the closing of loopholes (the "tax reform" Kennedy spoke of).Ultimately, in the form that Lyndon Johnson signed into law, it reduced tax withholding rates, initiated a new standard deduction, and boosted the top deduction for child care expenses, among other provisions. It did lower the top tax bracket significantly, although from a vastly higher starting point than anything we've seen in recent years: 91 percent on marginal income greater than $400,000. And he cut it only to 70 percent, hardly the mark of a future Club for Growth member.
It's laughable to think that tax cuts on the average person are somehow a cornderstone of the left.
Try again, doofus.
"The debt explosion has resulted not from big spending by the Democrats, but instead the Republican Party's embrace, about three decades ago, of the insidious doctrine that deficits don't matter if they result from tax cuts."
David Stockman - Director of the Office of Management and Budget for U.S. President Ronald Reagan.
"Grover Norquist has no plan to pay this debt down. His plan says you continue to add to the debt..."
Senator Saxby Chambliss (R-Ga.)
“Ronald Reagan changed the trajectory of America in a way that Richard Nixon did not and in a way that Bill Clinton did not. Reagan was an ideological inflection point, ending a 50-year liberal ascendancy and beginning a 30-year conservative ascendancy."
Charles Krauthammer
The New Frontier
WAS Keynesian Economic policies.
“It is no contradiction – the most important single thing we can do to stimulate investment in today’s economy is to raise consumption by major reduction of individual income tax rates.” – John F. Kennedy, Jan. 21, 1963, annual message to the Congress: “The Economic Report Of The President”
Keynesian Economics
JFK’s administration adopted fiscal and monetary policies to close the recessionary gap. Economist John Maynard Keynes was a believer in Monetarism which is the theory that in order to stabilize the economy the government must lower or raise interest rates accordingly. Keynes also introduced the concept of aggregate demand which showed that full employment could be maintained only with government spending. JFK fully embraced this idea, he fueled the economy by investing in domestic, military, and space programs. This is also known as Kennedy's New Frontier. He proposed to give federal aid to education, medical care to the elderly, mass transit, as well as regional development in Appalachia which, in turn, would help the impoverished community for decades. President Kennedy signed the Housing Act of June 30th 1961 to aid middle income families as well as mass transportation users while also increasing urban renewal. Unfortunately, congressional support was limited therefore, his plans were downgraded by congress. JFK was a supporter of organized labor, he helped strengthen their rights with the Trade Expansion Act of 1962. The President also looked to increase minimum wages and signed a bill in 1961 which expanded the minimum wage to $1.25.
Congress and Kennedy
Regrettably many of President Kennedy’s proposals were shot down by a conservative congress run by Republicans and Conservative Democrats. It is important to keep in mind that JFK won the electoral vote by 83 votes. Congress was more than reluctant to fund Kennedy’s liberal plans such as the funding of education and Medicare. President Kennedy was, however, able to sign legislation to raise the minimum wage and increase social security benefits – this was possible in part because of his Vice President L.B. Johnson’s extensive relationship with congress . On June 30th 1961 JFK signed a bill that would extend Social Security to over five million people.
"The largest single barrier to full employment of our manpower and resources and to a higher rate of economic growth is the unrealistically heavy drag of federal income taxes on private purchasing power, initiative and incentive." John F. Kennedy, Jan. 24, 1963, special message to Congress on tax reduction and reform
Taxes
Kennedy's tax cut did not go into effect until after his assassination. The theory behind JFK's tax cuts was that when disposable income increases spending increases. This will directly affect aggregate demand. Fiscal expansion raises the demand for products. Increases in demand will lead to more output without changing the prices. Kennedy also introduced an investment tax credit meaning businesses can reduce their income taxes by 10% of their investment in a year. With increased spending and tax cuts, investments grew boosting aggregate demand. According to Andrew L. Yarrow author of Measuring America: How Economic Growth Came to Define American Greatness in the late 20th Century
"...more evidence that Keynesian ideas, translated into policy, would further increase American growth and prosperity". The government also purchased bonds to increase the supply of money while reducing interest rates.
---------------------------------------------------------------------------------------------------
The real death blow to your argument and the ultimate irony is that Republicans OPPOSED Kennedy's tax cuts.
The Golden Age of Republican Deficit Hawks
Several readers wrote in, asking whether Republicans were ever really pro-tax, or if they merely put up with higher taxes in the name of fiscal discipline.
The answer is that once upon a time, Republicans did indeed advocate leaving taxes alone, opposing tax cuts.
In the 1950s and 1960s, federal deficits were relatively small compared to the size of the economy, but even during those flush years, Republican leadership was reluctant to advocate tax cuts. In 1953, for example, Dwight Eisenhower said the country “cannot afford to reduce taxes, reduce income, until we have in sight a program of expenditures that shows that the factors of income and of outgo will be balanced.”
And when his successor, John F. Kennedy, proposed sharp tax cuts in 1963, the more conservative Republicans in Congress initially opposed them because the cuts would expand the deficit.
The legislation eventually passed (after Kennedy’s assassination), but over the objections of about a third of the Republicans voting. Here’s the House vote, and here’s the Senate vote.