Question

I'm looking for a list of fiscal policies from 1965 through 1975. And a list of fiscal policy action s taken. I'm setting up a power point presentation any help would be greatly appreciated.

Answer 1

Ans) Several new policies were being adopted over the time with a view to maintain a stable economy, thus a variety of monetary and fiscal policies were being adopted within the period of 66-67, as the pressure was increasing to cope up with the defense budget.

As 1965 saw a rapid economic advance, during its second half it was clearly evident that a need for restraint in policies was required in the beginning of 66'. The president's budgetary reinforced this restraining requests for new graduates withholding system on individual income taxes.

Revolutionary ideas of long run fiscal policy were being encouraged, thinking that it was not important to balance the budget even over a period of several years. In the 60's there was a huge influence of Keynesian theories, along with this a series of mistakes in the economic policy were made, was a belief of several economists.

After enacting a tax cut in 1964 to stimulate economic growth and unemployment reduction, President Lyndon B.Johnson launched a series of expensive domestic spending programs to alleviate poverty.

Huge amounts were being spent over the military to pay for the involvement in Vietnam war in concurrence to strong spending by consumers, seeing a rise in demand and services beyond what the economy could produce. Wages and prices saw an unnatural rise creating an atmosphere of inflation.

In the early 70's the nation was hit by a sharp rise in international oil and food prices. The anti inflation strategy would be to restrain demand by cutting federal spending or raising taxes. But eventually this would make the income drain from the economy that is already suffering from inflation, resulting in an increase in unemployment.