ECLECTICS:WHAT DID WE LEARN FROM KEYNES?PART 14

on the fact that Kennedy's approach was largely keynesian economics characterised by massive tax cut that boosted heavily consumer spending and business activity skyrocketed.As new factories opened shops unemployment declined to the lowest margin.Dont forget booms barely died of old age were often murdered by the Fed. and this one too did not last too long when high demand grew unchecked to exert new inflationary pressure.President Lyndon Johnson'sWar on Poverty,boosted spending and better still Vietnam war skyrocketed agregate spending.Consequently by 1965,agregate demand ballooned by 8 percent perannum.With production stilllagging behind,shortages and inflation boomerang and inevitable with no direction to curb spending.He opposed tax increase and spending on Poverty war programs accelerated.But spending had been allowed togrow fartoo long unopposed and by60s or 1967,inflation waseverywhere.By 1968,hehad compromisedwith one year Surtax signed into law and too little to drive full saileconomy of the late60s.