Mikki Patane ECO_202_Milestone_1,,2 and 3 Macroeconomic Data Report

Macroeconomic Data Report Mikki Patane ECO 202 Milestone One (Slides 1-7) Milestone Two (Slides 8-11) Milestone Three (Slides 12-15) U.S. Economic History Overview of • GDP and Growth • Significant macroeconomic events • Unemployment and Inflation • Keynesian Theory • Interest Rates • Bretton Woods system • Effects on GDP, Global Trade and Global Economy GDP and Growth • Gross Domestic Product (GDP) and Growth • Growth rate of was averaged at 5% Significant Economic Events • Recession of 1960 • Unemployment peaked at 6.9% • GDP declined 2.4% • Recession ended by JFK with stimulus spending • The Vietnam War • Peak military spending reached 9.5% of GDP • Increase of GDP due to increased military spending • Election of President Nixon 1969 • Inflation soared prior to Nixon taking office • Unemployment was low at 3.3% • Early economic policy called for tight budget and restrictive monetary policy Unemployment and Inflation Inflation Rates • The Great Inflation of 1965 • Inflation grew by more than 1% per year • Result of Federal Reserve Policies • The Pursuit of Full Employment • Minimal-zero unemployment rates • The Bretton Woods system • The backing of US funds by gold to stabilize global trade and economy Interest Rates (cont.) Fiscal Policies of the 1960’s • The Revenue Act of 1964 to increase spending and GDP • Enacted by Lyndon B Johnson in 1964 after the assassination of JFK • Economic Opportunity Act • Created to aide the War of Poverty • Medicare amendment to Social Security • The Great Society Program • Johnson agenda for congress in 1965 Fiscal Policy Actions • Revenue Act of 1964 • Decrease taxes • Increase disposable income • Increase GDP • Economic Opportunity Act • Fundamental law under Johnsons War on Poverty • Created Job Corps and Head Start program • Loaned money to Rural families to increase disposable income • Investment and employment incentives • The Great Society Program • 1965 Medicare amendment to Social Security Act • Providing care for the elderly and poor Fiscal Policy Impact • GDP increased from • $3,589 to $3,844 ............................................continued...............................................