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The Beginning
During the 1960s the United States experienced its longest uninterrupted period of economic expansion in history. After coming out of a two-year economic recession this was truly the turning point for the economy during the 20th Century. -
The Beginning (Cont.)
In early 1963 inflation was stable, corporate profits were at a record high, and the stock market had rebounded, but unemployment was still too high at 5.7 percent and rising. -
Plans To Cut Taxes
Prior to his death in Nov. of 1963, President Kennedy signed an executive order to "an across-the-board, top-to-bottom cut in personal and corporate income taxes." The tax system, mostly designed during World War II, "exerts too heavy a drag on growth in peace time; that it siphons out of the private economy too large a share of personal and business purchasing power; that it reduces the financial incentives for personal effort, investment, and risk-taking," -
Tax Cuts Get Passed
Congress agreed to pass Kennedy's $12 Billion tax cuts. The economy soared after these orders were signed off. The tax rate went from over 91% down to nearly 70%. The Jobs Corps was created after these cuts were made by the Economic Opportunity Act, which was part of President Johnson's "Great Society" -
Added Benefits
Along with the $12 Billion tax cuts made, there were numerous other benefits to the economy which included: Increasing the minimum wage Expanding unemployment benefits. Boosting Social Security benefits to encourage workers to retire earlier. Spending more for highway construction. -
Implement of Free Health Care
President Johnson signed a landmark amendment to the Social Security Act, creating Medicare and Medicaid. These programs provided federal health insurance for poor families and citizens over 65. -
Fast Growing Economy
As a result of the reduced tax cuts by President Kennedy, the economy was growing at a rate of 6.6 percent and an unemployment rate falling to just 3.8 percent in just under two years. -
Curb Inflation
Society was getting mad at the government for rising food prices, so the Nixon Administration imposed wage and price controls to curb inflation. The inflation was initially halted however it shot back up after the controls are removed -
Oil Embargo
Unemployment and inflation rates reached 10 percent. This was a result of the Arab oil embargo during the Arab-Israeli war, causing prices for fuel to rise drastically. This led to a decline in agriculture combining because the farmers couldn't afford the fuel.
