Johnson: economic developments

Question 1

Johnson’s economic policies

Answer 1

• Under EIsenhower = 19% growth in GNP
• Under Kenendy and Johnson = 39% growth in GNP
• GNP grew $9M
• Unemployment stood at 1.4%
• 96% americnas believed standard of living would improve
• J put through Ks tax cut proposal = stimulated economy
• Infletion stayed relatively low - just under 2%, picked up slightly late 1965, left Nixon infletion problem
• average growth rate for economy = 4.1% a year
• big economic problems in 1968: trade deficit made up by sending gold abroad, which had decreased by 40% since 1945
• when reserves dropped to $12.4bn (lowest since 1937) the dollar was greatly weakened

Question 2

Johnson’s economy: 1965

Answer 2

• signs booming economy was slowing