NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
John F. Kennedy was president during this time period and we were under Democratic leadership. Kennedy's first year in office brought him considerable success in enacting new legislation. Congress passed a major housing bill, a law increasing the minimum wage, and a bill granting federal aid to economically depressed areas of the United States. The most original piece of legislation Kennedy put through Congress was the bill creating the Peace Corps, an agency that trained American volunteers to perform social and humanitarian services overseas. The goal of the Peace Corps was to promote world peace and friendship with developing nations.
However, after his initial success with Congress, Kennedy found it harder and harder to get his programs passed into law. Although the Democrats held a majority in both houses, Southern Democrats joined with conservative Republicans to stop legislation that they did not like. The Medicare bill was defeated, a civil rights bill and a bill to cut taxes were debated. Kennedy wanted economist Robert C. Weaver to be the new secretary but this nomination was poorly received from Southern Congressman and representatives from mostly rural areas because weaver was a black man. Kennedy did win approval of a bill to lower tariffs allowing more competitive American trade abroad.
Congress also authorized the purchase of $ 100 million in United Nations bonds, and the money made it possible for the international organization to survive financial crisis. The House Ways and Means Committee put off action on Kennedy's revision of the tax laws in 1961. Kennedy sent a message to Congress proposing various tax law reforms, some of them were also requested by former President Eisenhower. These tax adjustments were supposedly the first step to constructive reform.
He would then send Congress a comprehensive tax reform program aiming to reverse the trend to preferential treatment of various groups by broadening the tax base and reconsidering the rate structure. To arouse additional spending for plant equipment and equipment by the U. S. industry, Kennedy proposed a tax credit for new investment. Under the proposal if new equipment expenditures exceeded the depreciation allowance, a firm could deduct 15 % of the excess, if equipment expenditures were in excess of one half of the depreciation allowance, they could deduct 6 % of the excess.
As a minimum credit a firm could deduct 10 % of the first $ 5, 000 of new investment. There was much opposition to this proposal in the business community but Kennedy argued its advantages over alternative incentives which were to cut in the corporation tax rate, because it would apply to individuals and partnerships as well as corporations. A credit for all new investment would entail heavy revenue loss from those expenditures which would have been undertaken anyway or represent no new level of effort. As the U. S. national debt reached the highest fiscal year, 289, 211, 154, 060. 05 in fiscal year 1961, congress responded to the President's request and increased the national debt ceiling for 1962 from the permanent level of $ 285 billion to $ 298 billion.
A bitter minimum wage battle ended in 1961 when Congress passed a landmark legislation both raising the hourly minimum and for the first time since 1938, extending the categories of coverage. Kennedy came out on top with a major victory after an initial set back. Secretary of Labor said that the rate schedule was decided upon after careful study of the impact, the economic situation and the desirability of being certain the minimum rates will not adversely affect employment. Not all the 4. 3 million new employees to be covered by the bill would receive wage increases. A number of the newly protected workers who were paid less than $ 1 per hour would receive $ 242 million in increases during the first year and that by the fourth year the 1, 665, 000 workers currently earning less than $ 1. 25 per hour would receive $ 896 million more. There are some workers who were exempted from minimum wage and overtime provisions of the Federal Labor Standards Act.
Kennedy proposed measures both to alleviate the distress arising from unsatisfactory performance of the economy and to stimulate economic recovery and growth. If economic development in the first quarter of that year indicate that additional measures are needed, he would promptly propose such measures. The potential of the American economy is constantly expanding. The labor force rose by 1. 5 percent per year.
Output per man rises annually by 2 percent as a result of new and better plant and equipment, modern technology, and improved human skills. These increases in manpower and productivity provide the base for a potential annual growth rate can and should be increased. A proposal was made to expand the nation's investments in physical and human resources and in science and technology. Back then the economy had not realized even its present possible growth.
From the peak of the business cycle in the second quarter of 1950 to the top of the anemic recovery seven years later, gross national product grew only at an annual rate of 2. 5 percent. Failure to use our full capacity is the urgent economic problem of the day. In the 1960 's, the American economy produced $ 503 billion of output when it was capable of producing at least $ 535 billion of output could have been 8 percent higher than it was. More than a million and a half unemployed, over one third of all employed could have had jobs. The performance of the economy in the 1960 's was not only well below its full capacity but it fell short of the levels expected by the previous administration. This could have been accomplished with readily available manpower, materials and machines, without straining productive capacity and without igniting inflation.
If the economy were operating at full capacity, the existing federal revenue system would yield more than $ 90 billion in fiscal year 1962, instead of the 82. 3 billion now estimated, producing a large budget surplus and permitting retirement of national debt as well as the further development of federal programs to meet urgent national needs. Debt retirement at high employment contributes to economic growth by releasing savings for productive investment by private enterprise and state and local governments. Kennedy proposed a program designed to fulfill our responsibility to alleviate distress and speed recovery, both through benefits directly available to needy persons and through desirable fiscal effects on the economy. They will sustain consumer spending and increase aggregate demand now when the economy is slack. Many of these expenditures will automatically cease when high employment and production are restored. Both full recovery and economic growth require expansion of expenditures for business plant and equipment, for state and local governmental facilities, and for residential construction.
To increase the flow of credit for these proposed, long term interest rates should decline. Futher decline in short term interest rates, under the conditions at that time, would lead to a further outflow of funds abroad, adding to the deficit in our balance of payments. That would be particularly unfortunate at the present time, just as falling rates abroad have been narrowing the gap between our rates and those in other countries. In these circumstances, monetary policy and debt management must serve two apparently contradictory objectives. Kennedy emphasized that the solution to the economic problem requires a program that goes well beyond anti recession measures important as these are to the relief of distress and reversal of economic decline. Also important are measures for the longer pull to restore our economy to its full potential and to accelerate economic growth.
The measures to overcome recession, to take up the slack and to speed growth all reinforce each other. Most industries have the facilities to produce well above current levels. They lack only customers. As a nation, we lose not only $ 30 to $ 40 billion of production per your. We also lose vital incentives which capacity operation gives for expansion and modernization of plant and equipment. He proposed to reduce unemployment and stimulate m...
Free research essays on topics related to: congress passed, term interest rates, peace corps, state and local, minimum wage
Research essay sample on Term Interest Rates State And Local
