C Douglas Dillon's Influence In The Formulation Of Government Policies

However, in the 1960s, prosperity was becoming too far out of reach. The Cold War and the Korean War were very costly in military spending. It had taken its toll on the economy. Even with more people buying, the economy was growing at a very slow rate. There were also millions of Americans who were still living in poverty, and the economy had gone into recession quite a few times in the 60s. Then, the stock market fell dramatically, the worst it had been since the Depression. Kennedy addressed this by making tax cuts for larger business, which helped the economy develop and grow more prosperous in the years to come. However, inflation made a reappearance

Carter vetoed a public works package in 1978 in retaliation. Without mutual respect within the branches of the government, compromises and agreements for the domestic issues are hard to reach. The hostility between the two branches deterred progress in the nation’s fragile economy and unemployment. Ford and Carter tackled the perplexing economic issues of the decade, an issue that economists at the time couldn’t even solve. Ford decided to tackle inflation first. His “WIN” plan (Whip Inflation Now” called for an increase in taxes and a reduction of federal spending. To promote this plan, he called for the production of pins with “WIN” on them. This plan did not go well with Congress. Congress eventually passed a bill for a $22 billion tax cut, but it increased government spending on government programs. Ford signed this bill to strive to ease tensions between Congress and himself. In 1975, Congress passed a Revenue Adjustment Act which called for a tax cut and a limit to future spending in the future. It served as a negotiation between the executive and the legislative branches. This was successful in helping inflation; however, unemployment continued to rise. Carter attempted to tackle unemployment first, unlike Ford. Although Carter’s economic decisions helped to reduce unemployment by stimulating the economy, he did not pass any legislation that specifically targeted unemployment. His personal conflict in

In addition, Reagan’s 1981 Program for Economic Recovery had four major policies, which are: to reduce the growth of government spending, reduce the marginal tax rates on income from labor and capital, reduce regulation, and to reduce inflation by controlling the growth of the money supply (Niskanen). Reagan’s Economic Recovery Program, also known as Reaganomics, was the most serious recession of the U.S. economic policy since Franklin D. Roosevelt’s New Deal (Niskanen). However, according to historian, Eric Foner, there have been many issues with Reaganomics since the new policies, rising stock prices, and deindustrialization inevitably resulted into the rise of economic inequality, also known as the second gilded age (Foner 832).

    Economically, Wilson followed a similar strategy by administering legislative acts and systems, such as working to lower tariff rates as well as to establish a new type of banking system. Following this effort to curb big business, Wilson tried to lower tariff rates by lobbying in 1913 for the Underwood Act, which would substantially reduce the rates. Because of Wilson’s efforts and perseverance in addressing the issue, “...the new president’s use of the bully pulpit, the Senate voted to cut tariff rates even more deeply than the House had done,” (The Americans 333). Wilson’s persistence in acquiring this reduction of tariff and a greater need to find a way to restore the money that will be lost by these cuts (Federal Income Tax) shows especially how Wilson has economically impacted the Progressive Era. Along with reducing tariff rates, Wilson also aided the era by establishing the Federal Reserve System.

    During Reagan’s presidency he took economics seriously. He made efforts to lower Government spending as well as regulation, taxes, and prosperity. He would lower government expenditure because it would create room to decrease taxation. By decreasing income revenue it created more money for people to spend which would stimulate the economy. Reagan fought hard for helping out the economy.

Since raising revenue in the United States was one of the first economic issues the Federalists were up against, a solution to national debt had to be found and agreed upon. During the Federalist’s struggle, James Madison was a federalist who was

After the Stock Market Crash of 1929 and the Hoover administration, something had to be done regarding the relief and recovery of the Great Depression. This was one of the more important objectives of Franklin Delano Roosevelt’s first term as president. Although Herbert Hoover made somewhat of an attempt trying to reconcile the country, but he was unable to live up to his rhetoric, “prosperity is right around the corner.” Hoover failed to comprehend the extent of the damage of the stock market crash from a global perspective and simply did too much too fast. When Franklin Roosevelt came into presidency in 1933, he set out his first hundred-day plan. Within the first term, FDR created a series of relief and recovery acts to start the

President Reagan’s radical tax cuts lead to a decrease in unemployment and an increase in incomes for Americans of all statuses. Despite the fact that, “in the late 1970s, the US economy was experiencing what was then the greatest economic crisis since the great depression… almost every economic measure substantially improved after Reagan’s reforms took effect” (Hannaford). Editors Pat Hannaford and Darcy Allen observe that, “by reducing America’s tax burden, Reagan’s

The men who served as president during their terms before FDR either focused on Hamiltonian or Jeffersonian views when making decisions for the country. They either focused on the government having more control, or on the common man having the control. FDR, on the other hand, used a combination of the two. The New Deal was created solely to improve the conditions of the United States during the Great Depression. The successes and failures of FDR’s combination of “Hamiltonian means” to achieve “Jeffersonian ends” are reflected by the New Deal with the occurrence and extremism of the court-packing scheme, the outcome of the National Industrial Recovery Ac t, and the New Deal programs helping the common man while increasing the government’s involvement.

The time period examined in this book is from 1933 through 1941. President Franklin D. Roosevelt’s administration is shown to have made the economic factor a preeminent issue during his presidency. Those individuals highlighted by Hearden are: Cordell Hull, Adolf Berle, Pierre-pont Moffat, and Norman Davis. Americans besides those in President Roosevelt’s administration that had great influence were: John Foster Dulles, Thomas W. Lamont, George Peek, and James P. Warburg.

Mellon was appointed by Warren G Harding’s during his term as president policies that decrease taxation on businesses and other companies in the United States, the various classes of the citizens from the highest, middle and lowest. The success of the policy led to the decline of the government expenditure which dropped from 6.4 million in 1920 to 3.3 billion in 1922.America’s debt in 1920 was 24billion; it later dropped to 18 billion in 1929. Mellon succeeded when he dealt with the post war depression. At the time of the war, he declined taxes, more money for investment in business that created jobs. The income increased and many citizens into the business line. Knowing the consequences of revenue and economic impacts, it considered the aftermath of the 1920 tax rate reduction by the Treasury secretary Andrew Mellon under Presidents Warren Harding

Reagan implemented policies based on supply-side economics and advocated a classical liberal and laissez-faire philosophy, seeking to stimulate the economy with large, across-the-board tax cuts. Reagan’s outlook on economics was what he and the public called “Reaganomics”. “The blueprint for “Reaganomics,” was a sketched out supply-side approach to the economic, including massive cuts in income taxes, capital gains taxes, and corporate taxes,”(340). His platform advocated reducing tax rates to spur economic growth, controlling the money supply to reduce inflation, deregulation of the economy, and reducing government spending. Reagan's policies proposed that economic growth would occur when marginal tax rates were low enough to spur investment, which would then lead to increased economic growth, higher employment, and wages. Reagan’s beliefs on cutting taxes were supported by ideas of William Sumner who believed that the best equipped to win the struggle for existence was the American businessman, and concluded that taxes and regulations serve as dangers to his survival. Reagan believed strong nations were composed of people who were successful at expanding their empires and these strong nations would survive in the struggle for dominance.

This allowed new markets to open and helped businessmen like Henry Ford provide automobiles to the working class for the first time. Due to the increase in the standard of living and increased buying power people received during the 20’s, the liberal policies of president hoover were embraced. However even prior to the Depression, Herbert Hoover displayed some conservative tendencies. In his candidacy speech he showed contempt for liberalism because it would limit the liberties of people. He also believed that less government intervention would be in everyone’s best interest (Doc A). He believed in the personal and states rights which was shown in his lack of intervention during the Great Depression. He stated that the only way to pursue change was to promote people to do what was best in their communities (Doc B). One of Hoover’s goals during the Depression was to retain a balanced budget (Doc F). However his support of businesses made him reject the plea of the public to increase inflation so that they could pay of their debts because he believed it would stop businesses from investing money. This led to a large burden being placed on trading partners as well as american workers, although he did try to give money for the creation of public works jobs (Doc C). To help the economy Hoover passed the Hawley-Smoot Tariff, which was the highest tariff in US history. This resulted in higher public debt and deficit which reached 22.5 billion by the time FDR was in office (Doc

In 1932, when Franklin Delano Roosevelt took office, the citizens of the United States had possessed sufficient time to realize that they could no longer be proud, but they must take anything they could get. Therefore, the programs set up by FDR’s New Deal program were perfect for the country at the time. These programs helped the people directly, providing relief, recovery, and reform. FDR based his plans on the philosophy of Keynesian economics, where the government spends money to make money. The government gave money and jobs to those in need, who in turn, had money to spend in the marketplace. The demand for products increased, and businesses were able to hire more workers and produce more products, as well as pay more money in taxes. FDR’s plans worked because they gave money not to those who would take advantage of the government, but to those who would use it in the way the government intended it to be used. During FDR’s first term in office alone, the unemployment rate dropped 4%. Because of FDR’s success in bringing the country out of the Depression, I give him an A.

The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose