Let me drop a knowledge bomb an ya. JFK did not practice Keynesianism. I don't care if he was in the middle of a Keynes circle jerk with Keynes himself.
So one of your arguments is that Kennedy was a Keynesian because he surrounded himself by Keynesians. That's sort of like saying Jane Goodall was an ape because she was surrounded by apes. Kennedy may have started out as a Keynesian before he became president but once in office (no matter how you massage quotes from liberal sources) Kennedy did not practice Keynesianism.
If I wanted liberal revisionism badly disguised as fact I would have watched a Michael Moore movie. Now have a cookie and enjoy your medication.
WOW, you are really doubling down on falsehood. Those 'liberal sources' were people IN his administration. But of course what would they know, they were just THERE and authored the policies...
The New Frontier
WAS Keynesian Economic policies.
It is no contradiction the most important single thing we can do to stimulate investment in todays 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
JFKs 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 Kennedys 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 Kennedys 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. Johnsons 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.
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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 Kennedys assassination), but over the objections of about a third of the Republicans voting. Heres the House vote, and heres the Senate vote.
The rights misplaced love of JFK tax cuts
When Kennedy cut taxes, he lowered the top marginal tax from 91% to 65%. Many congressional Republicans opposed his plan at the time, citing concerns that the treasury couldnt afford such a tax break the Republican Party used to be quite serious about fiscal responsibility, but its been a half-century but Kennedy proceeded anyway because the higher rates, instituted during World War II, were no longer necessary.
Also at the time, the country had very little debt Eisenhower, thankfully, kept taxes high throughout the 1950s almost no deficit. Fiscal conditions, obviously, are far different now.
Keep in mind, unlike contemporary GOP policy, Kennedys plan distributed peace dividends broadly across the wage spectrum. As the Joint Committee on Internal Revenue Taxation explained at the time, the bottom 85% of the population received 59% of the benefits of JFKs tax cut. The top 2.4% received 17.4% of the tax cut, and the top 0.4% received just 6% of it.
Those on the right who see themselves as descendents of the Kennedy policy are either deeply confused or they assume you wont bother to learn the truth.