kennedy economy

Why did Kennedy and Treasury Secretary C. Douglas Dillon fear a decline in American international trading power?

The creation of the European Economic Community (EEC) in 1957 reduced tariffs within Europe, making American imports less competitive.

What were the Geneva tariff negotiations (1961–1962) involving Kennedy's administration called?

The Dillon Round.

What did the 1962 Trade Expansion Act do to presidential power over international commerce?

It gave the president the power to reduce tariffs by 50% of 1962 levels or increase them by 50% of 1934 levels to negotiate better trade terms.

What was the "Kennedy Round" (1964–1967)?

A series of tariff negotiations aimed at reducing global trade barriers, for which Kennedy laid the groundwork before his death.

What did the 1961 Housing Act do to stimulate the construction sector and help workers?

It spent $3.2 billion to improve the national housing stock and successfully created 420,000 construction jobs.

What milestone did Kennedy reach with federal revenue in 1962, and what fiscal controversy did he cause?

He was the first president to preside over a $100 billion revenue, but also the first to run a budget deficit outside of war or recession (in 1961).

Why did a coalition of Republicans and conservative Democrats block Kennedy's proposed tax cut in 1963?

Because Kennedy refused to cut government spending in order to balance the national budget.

How successful was Kennedy's strategy of prioritizing unemployment over a balanced budget?

He successfully reduced national unemployment from the 7% he inherited from the Eisenhower recession down to 6% by 1963.

What happened to the US budget deficit between 1961 and 1964 as a result of Kennedy's spending policies?

The national deficit doubled, skyrocketing from $3 billion to $6 billion.

What did the 1962 Revenue Act create to boost American industrial growth?

It created a 7% investment credit to stimulate business and industrial expansion.

Why did the business community largely view Kennedy as "anti-business" in 1962?

He had a fierce public clash with US Steel CEO Roger Blough, forcing him to retract a steel price increase, which led Blough to threaten to move factories overseas.

What was the "Kennedy Slide" of 1962, and what caused it?

The US stock market lost a quarter of its value due to the intense economic and political uncertainty of the Cuban Missile Crisis.

What was the actual average annual GDP growth rate under the Kennedy administration?

Despite negative public perceptions of his economic performance, the US GDP grew by a robust average of 5.5% per year.