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Macroeconomic Policy and a Living Wage pp 169–207Cite as

Palgrave Macmillan

Kennedy’s New Frontier: Tax Cuts and Wage Policy

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Abstract

This chapter will investigate Kennedy’s approach to economics through a review of speeches he made and his Economic Reports. In his first Economic Report, he used the hybrid system of redistributive economics to formulate policies to end the recession that he inherited as president. When those policies did not cause the economy to grow fast enough, Kennedy evolved his policies to a tax cut that was a combination of Keynesian economics and conservative supply-side thinking.

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Notes

  1. 1.

    Kennedy, 1961b.

  2. 2.

    Dillon, 1985, p. 128; Heller, 1985, pp. 146 and 148.

  3. 3.

    Kennedy, 1960c.

  4. 4.

    Kennedy, 1960a.

  5. 5.

    Democratic Party Platforms, 1960.

  6. 6.

    Nordlund, 1997, p. 99.

  7. 7.

    Kennedy, 1960b.

  8. 8.

    Nordlund, 1997, p. 80.

  9. 9.

    Saulnier, 1991, p. 162.

  10. 10.

    Damms, 2016, pp. 7–12. See also McClenahanm and Beder, 2011, p. xi.

  11. 11.

    Eisenhower, 1954b.

  12. 12.

    Eisenhower, 1954c.

  13. 13.

    Burns, 1946, p. 4.

  14. 14.

    Burns, 1946, p. 10.

  15. 15.

    Eisenhower, 1954a, p. 51.

  16. 16.

    Eisenhower, 1954a, p. 96.

  17. 17.

    Eisenhower, 1954a, pp. 77–79.

  18. 18.

    Eisenhower, 1954a, p. 102.

  19. 19.

    Lumer, 1954, p. 198.

  20. 20.

    Hansen, 1954, pp. 258–259.

  21. 21.

    O’Reilly, 1954, p. 8.

  22. 22.

    American Federationist, 1954a, pp. 5–6; Brown, 1954, pp. 10–11. See also Shishkin, 1954a, p. 4; 1954b, pp. 3–4; Meany, 1954, p. 14.

  23. 23.

    CIO News, 1953a, p. 3.

  24. 24.

    CIO News, 1953b, p. 3; 1953c, p. 5; 1954a, p. 2.

  25. 25.

    CIO News, 1954b, p. 3. See also CIO News, 1954c, p. 3; 1953b, p. 3; 1953c, p. 5; 1954a, p. 2.

  26. 26.

    CIO News, 1955, pp. 6–7.

  27. 27.

    American Federationist, 1954b, p. 3.

  28. 28.

    Meany, 1956a, pp. 4–5; 1956b, pp. 16–17; Cruikshank, 1956a, pp. 7–9; 1956b, pp. 20–21; Gray, 1956, p. 11.

  29. 29.

    American Federationist, 1959, p. 7.

  30. 30.

    Hansen, 1947, p. 73.

  31. 31.

    Hansen, 1960, pp. 44–45.

  32. 32.

    Hansen, 1964 [1951], p. 545.

  33. 33.

    Hansen, 1960, pp. 140 and 148.

  34. 34.

    Hansen, 1960, p. 33.

  35. 35.

    Hansen, 1960, pp. 37–38.

  36. 36.

    Phelps, 1948, pp. 585–590.

  37. 37.

    Hansen, 1960, pp. 105–106.

  38. 38.

    Hansen, 1960, pp. 33–34.

  39. 39.

    Kennedy, 1960d. Kennedy’s Secretary of the Treasury, Douglas Dillon, doubted that the speech, which was published in The New York Times, was ever delivered. Dillon, 1985, p. 128.

  40. 40.

    Kennedy, 1960d.

  41. 41.

    American Federationist, 1960, p. 15.

  42. 42.

    American Federationist, 1960, pp. 19–20.

  43. 43.

    American Federationist, 1960, pp. 14–15.

  44. 44.

    Heller, 1950, pp. 532–533.

  45. 45.

    Kennedy, 1961c, is the source of the above material.

  46. 46.

    Kennedy, 1962a, p. 3.

  47. 47.

    Kennedy, 1962a, p. 4.

  48. 48.

    Kennedy, 1962a, pp. 4–5.

  49. 49.

    Kennedy, 1962a, p. 6.

  50. 50.

    Kennedy, 1962a, p. 8.

  51. 51.

    Kennedy, 1962a, pp. 16–17.

  52. 52.

    Kennedy, 1962a, pp. 9–10.

  53. 53.

    Kennedy, 1962a, pp. 20–21.

  54. 54.

    Kennedy, 1962a, pp. 11–12.

  55. 55.

    Kennedy, 1962a, p. 27.

  56. 56.

    CEA, 1962, p. 37.

  57. 57.

    CEA, 1962, p. 39.

  58. 58.

    CEA, 1962, pp. 44–47. The estimate of four percent unemployment as kept inflation in check was consistent with an estimate derived from a Phillips curve for the USA by Samuelson and Solow, 1960, pp. 191–192.

  59. 59.

    CEA, 1962, pp. 57 and 63–66.

  60. 60.

    Stein, 1994, pp. 80–81.

  61. 61.

    CEA, 1962, p. 89.

  62. 62.

    CEA, 1962, pp. 101–103.

  63. 63.

    CEA, 1962, p. 174.

  64. 64.

    CEA, 1962, pp. 185–186.

  65. 65.

    CEA, 1962, pp. 189–190.

  66. 66.

    JEC, 1962, pp. 8–9.

  67. 67.

    JEC, 1962, p. 43.

  68. 68.

    JEC, 1962, p. 43.

  69. 69.

    JEC, 1962, p. 59.

  70. 70.

    JEC, 1962, p. 64.

  71. 71.

    JEC, 1962, p. 71.

  72. 72.

    JEC, 1962, p. 72.

  73. 73.

    Kudlow and Domitrovic, 2016, pp. 145–146.

  74. 74.

    Kates, 2016, p. 129.

  75. 75.

    Mellon, 1924.

  76. 76.

    Sowell, 2012, pp. 71–137.

  77. 77.

    Kudlow and Domitrovic, 2016, pp. 750–878.

  78. 78.

    Kennedy, 1962b.

  79. 79.

    Kennedy, 1962c.

  80. 80.

    Kennedy, 1963a, pp. ix–x.

  81. 81.

    Kennedy, 1963a, pp. xii–xiii.

  82. 82.

    Kennedy, 1963a, pp. xiii–xiv.

  83. 83.

    Kennedy, 1963a, p. xiv.

  84. 84.

    Kennedy, 1963a, pp. xviii–xix.

  85. 85.

    Kennedy, 1963a, p. xxiii.

  86. 86.

    CEA, 1963, pp. 15–17.

  87. 87.

    CEA, 1963, p. 32.

  88. 88.

    CEA, 1963, pp. 84–86.

  89. 89.

    JEC, 1963, p. 2.

  90. 90.

    JEC, 1963, p. 11.

  91. 91.

    JEC, 1963, pp. 45–55.

  92. 92.

    Kudlow and Domitrovic, 2016, pp. 1610–1985.

  93. 93.

    Kudlow and Domitrovic, 2016, p. 500.

  94. 94.

    Hansen, 1964 [1951], p. viii, italics in the original.

  95. 95.

    Hansen, 1964 [1951], p. viii.

  96. 96.

    Hansen, 1964 [1951], pp. 646–647.

  97. 97.

    Hansen, 1964 [1951], p. 654.

  98. 98.

    Hansen, 1964 [1951], p. 658.

  99. 99.

    Hansen, 1964 [1951], p. 655.

  100. 100.

    Sowell, 2012, p, 136.

  101. 101.

    Stein, 1994, pp. 108–110.

  102. 102.

    New Republic, 1962a, pp. 1 and 3.

  103. 103.

    Kraft, 1962, pp. 12–13.

  104. 104.

    New Republic, 1962b, pp. 3–4.

  105. 105.

    New Republic, 1962b, p. 4.

  106. 106.

    New Republic, 1963a, p. 5.

  107. 107.

    New Republic, 1963b, p. 3.

  108. 108.

    Altman, 1963, pp. 137–138.

  109. 109.

    Dorner, 1963, pp. 171–173.

  110. 110.

    Kennedy, 1961a, pp. 12–13.

  111. 111.

    American Federationist, 1961a, pp. 17–19.

  112. 112.

    American Federationist, 1961b, pp. 17–18.

  113. 113.

    American Federationist, 1961c, p. 26.

  114. 114.

    American Federationist, 1962a, p. 11.

  115. 115.

    American Federationist, 1962b, pp. 12–13.

  116. 116.

    American Federationist, 1962c, p. 17.

  117. 117.

    American Federationist, 1962d, pp. 17–19.

  118. 118.

    American Federationist, 1963a, pp. 14–17.

  119. 119.

    American Federationist, 1963b, pp. 18–20 and 1963c, p. 13.

  120. 120.

    Meany, 1962, inside front cover.

  121. 121.

    Kennedy, 1963b, pp. 8–9.

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    Donald R. Stabile

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Stabile, D.R. (2018). Kennedy’s New Frontier: Tax Cuts and Wage Policy. In: Macroeconomic Policy and a Living Wage. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-01998-3_6

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