ECO202 Macroeconomics Final As Sub Oct 21 2017.pptx - A...

This preview shows page 1 - 7 out of 22 pages.

ECO 202A Macroeconomic look at the 1960’sAnn Marie LallierECO 202
ECO 202Ten-Year Period of U.S. Economic History OverviewIn 1960, John F. Kennedy(D) is elected President of the United States. Kennedy began rapidly making changes by establishing the Peace Corps, ordering protection for Freedom Riders, raising the minimum wage and promising to place a man on the moon by the end of the decade.In 1962, Kennedy proposed an economic recovery plan that included large tax cuts and business credits. These proposals would later become part of the 1964 Tax Reduction Act.In 1963, Kennedy was assassinated and Lyndon B. Johnson was sworn in as President.President Johnson signed the Tax Reduction Act in 1964 and also signed the Economic Opportunity Act and the Urban Mass Transit Act.The Civil Rights Act of 1964 was signed by President Johnson outlawing discrimination.1n 1965 Medicare and Medicaid are established. President Johnson also signs the Voting Rights Act of 1965 and the Higher Education Act.Another minimum wage increase takes place in 1966.President Johnson signs the Housing Discrimination Ban and the Low Income Housing Bill in 1968. The same year that Richard Nixon is elected President and Neil Armstrong walks on the moon.The Vietnam War continued throughout the 1960’s.
ECO 202GDP Growth Rate and EventsYearNominal GDP (in trillions)Real GDP (in trillions)GDP Growth RateEvents Affecting GDP1960$.543$3.1092.6%Recession begins, interest rates lowered.1961$.563$3.1882.6%JFK became President. Unemployment rate 6.1%. Bay of Pigs invasion. Berlin Wall built.1962$.605$3.3836.1%Cuban Missile Crisis.1963$.639$3.5304.4%JFK Assassinated, interest rates raised.1964$.686$3.7345.8%Interest rates raised.1965$.744$3.9776.5%Medicare/Medicaid. Vietnam War. Interest rates raised.1966$.815$4.2396.6%Raised interest rates to fight inflation.1967$.862$4.3552.7%Inflation at 3.0%.1968$.943$4.5694.9%Moon Landing. Raised interest rate.1969$1.020$4.7133.1%Nixon Elected, Moon Landing, Raised Int. Rates.
ECO 202Events impacting the US EconomyPresident Kennedy initiated an economic growth and recovery plan that included 12 measures aimed to place economic growth at 4-6% and unemployment at 4%. By 1963 inflation was stable, corporate profits had risen and the stock market rebounded from the earlier recession, however, unemployment still remained high at 5.7%.The Vietnam War had a large impact on the US economy in the 1960’s. The need for military goods strained the nation’s production capabilities. Military expenditures combined with domestic spending created deficits that fueled inflation. As a result, interest rates rose and limited capital available for both consumers and businesses.
ECO 202Unemployment, Inflation and the Misery Index.
ECO 202Interest Rates

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture