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Unformatted text preview: Kennedy: Supply-sider or Keynesian Convert Kennedy’s tax cuts are widely credited with stimulating economic growth over the next two years. By 1966, there were 5.5 million more Americans employed than when he was elected to office. During these same years corporate profits grew more than 70%. 26 As with the rest of Kennedy’s legacy, politicians have argued over what exactly these tax policies represented. Republicans have called Kennedy an early supply-sider—a Democratic Ronald Reagan who recognized that economic growth rested on lowering business taxes and reducing the burden of government. Democrats have emphasized the demand-side portion of the cuts—the across-the-board rate reductions—and have insisted that Kennedy would never have tolerated the sorts of cuts later supported by Reagan and his Republican successors. They insist that Kennedy was ultimately a Keynesian convert, willing to cut taxes and accept deficit spending as an answer to economic stagnation. The truth is probably somewhere in between. Kennedy was more of an economic and political pragmatist than a supply-side theorist or Keynesian convert. From start to finish, he was pragmatist than a supply-side theorist or Keynesian convert....
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This note was uploaded on 01/04/2012 for the course AMH AMH2010 taught by Professor Pietrzak during the Fall '10 term at Broward College.
- Fall '10