03/28/02 - 20:21:52
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JFK cut taxes in the early 60s, leading to increased economic activity and ultimately more money flowing into the federal treasury. LBJ and his cronies in Congress spent it faster than it came in. Nixon (no conservative) also was a big spender and tried in vain to use price controls to stop inflation, as did Ford. Carter's term was a time of economic misery (inflation and high interest), but he did the honorable thing by sacrificing his political career and allowing interest rates to skyrocket, in order to stop runaway inflation. He also initiated the military buildup, which continued under Reagan.|
Like JFK, Reagan cut taxes, but the Democratic congress spent the resulting influx of tax money faster than it came in. Bush-the-elder took the blame for the next recession but was correct in resisting pressure to tinker with the economy. His mistake was breaking his no-new-tax pledge. By the time the economy recovered Bush had been kicked out of office and Clinton eagerly took credit for the recovery while raising taxes to the highest peacetime level in history. When the GOP Congress cut taxes, Clinton immediately took credit, fooled many people into thinking he was a conservative and got himself reelected. If his party had kept control of Congress, Clinton's high taxes would have ground the economy to a halt. Lesson: when the "rich" quit spending in order to pay higher taxes, the poor lose their jobs. Less money flows into the treasury, taxes get hiked to make up the difference, and the cycle of misery repeats. JFK understood this; Slick Willie did not.
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