JFK and the Reagan Revolution: A Secret History of American Prosperity

by Lawrence Kudlow, Brian Domitrovic

Though popular history places the 1950s at the pinnacle of post-war prosperity, the truth is that the 1960s were the real decade of economic success. The Dow Jones nearly doubled between 1962 and 1966, the recurring recessions of the Eisenhower years ended, and America saw a run of economic growth that ranks among the biggest in its history. Today, the Left would have voters believe that the 1960s boom happened despite, or even because of, high taxes. In fact, America enjoyed this era of prosperity because John F. Kennedy, the great hero of liberals today, embraced the very conservative ideas of supply-side economics. To the horror of fellow liberals, he initiated tax cuts that launched America's economy into years of growth--and that later inspired Ronald Reagan to imitate them.

In a blow-by-blow narrative of the tax battles within the Kennedy administration, the authors reveal how JFK assembled Keynesian advisors, only to reject their plans for loose money and big spending. Instead, Kennedy embraced ideas advanced by the non-Keynesians on his team of rivals and drew upon his own deep reading of history to opt for tax cuts and a recommitment to the gold standard.

Here we meet a fascinating cast of Kennedy Administration characters, especially Treasure Secretary Douglas Dillon, the token Republican in JFK's cabinet. Dillon's opponents, such as liberal economists Paul Samuelson, Robert Solow, and James Tobin, strove to stifle the push to bring down the high tax rates--including an astonishing 91% top rate on the wealthiest earners-- that were damaging the economy.

Once JFK became convinced of the power of tax cuts, he held his ground against the Keynesians. And as Kennedy made his case for the tax cut, the economy took off. After the assassination, Lyndon Johnson finally signed the tax-cut law in February 1964. The subsequent economic boom delivered the greatest prosperity the nation had ever seen.

This is an eye-opening look at one of the most important yet least understood episodes in American economic history. It shatters the argument that the Republicans who believe that cutting tax rates can result in more growth and more tax revenue have moved to the extreme right. Instead, it is the Democrats who have moved so far left as to have to disown John F. Kennedy's most successful policies.

Genres: History, Economics, Business, American History, Nonfiction, Politics

256 pages, Hardcover

First published October 20, 2015

Reviews

[Ronald J. · Rating 5 out of 5]

Excellent overview of the JFK tax cuts. Falsifies the historical revisionism that they were designed as a Keynesian policy to stimulate demand. Also, JFK had a Republican Treasury Secretary that pushed the plan, despite the objections of the Council of Economic Advisors. Good history, breezy read.

[Sarah W. · Rating 2 out of 5]

I approached this book with skepticism and I remain unconvinced by the authors' arguments. Much of this book boils down to the conservative argument for tax cuts and JFK's economic policy is presented as an ideal model for future prosperity. Considering how the years after JFK's assassination played out, I don't know that I can accept this theory. Furthermore, I listened to this one as an audiobook and the narrator's dry monotone didn't make the book any more compelling.

[Chuck · Rating 2 out of 5]

Very disappointing read. Long long long on the politics behind JFK's tax cuts which were passed after his assassination. Very short on the "History of American Prosperity".. . ..as I explained to my wife, we have every detail of the pregnancy and almost nothing on the baby.

And basically the 2 final chapters about Reagan . . . .A powerful subject and was hoping for an examination of how both President's tax cuts allowed for long periods of sustained growth along with increases in tax revenues.

[Erik Rostad · Rating 4 out of 5]

I really liked this book. I learned a ton. For starters, I had no idea that JFK cut taxes and that he was the main inspiration for Reagan's later tax cuts. I learned about the difference between monetary and fiscal policy and how presidents and Fed chairmen from JFK onward dealt with the policies. I learned about marginal vs non-marginal tax rates. And I learned a lot about inflation and recessions. If you have any interest in economics and the economic history of the past 60 years, you will enjoy this book.

[Alfonso Acevedo · Rating 4 out of 5]

Refreshing economic concepts

Interesting that economic life is all about cycles, no new concepts, just making the right call at the right time.

[Kelly · Rating 3 out of 5]

The author took what otherwise would have been a dry, dense subject and wrapped it into a narrative that was easy and enjoyable to read.

[Robert LoCicero · Rating 4 out of 5]

This is a truly stunning work. The history, both economic and political, that is the cement of this volume runs from the early 1960's to the turn of the Twenty-First Century. It is a easy to read and quite comprehensive look at the two times in the last 60 odd years in which a successful marginal tax rate cut has been pushed by an American President and followed up by Congressional approval. These important economic milestones occurred during the President Kennedy administration (presented to Congress by Kennedy in 1963) and during the Ronald Reagan administration in 1983. The economic growth and job creation with its concurrent wealth distribution to all Americans has not been matched since. The authors, Larry Kudlow, a well-known TV and radio personality and former analyst in the Reagan Office of Management and Budget, and historian, Brian Domitrovic, have done a bang up job in making the economic processes understandable within a comfortable writing style. The authors are defining the appropriate course for our nation to undertake a similar large marginal tax rate cut and tax reform package under President Trump that should push our economic engine to once again shine and produce wealth and prosperity for all our citizens.
This book is highly recommended and though short in length well worth the reading effort.

[Jonathan · Rating 3 out of 5]

Let me start by saying that i like Reagan and Kennedy, and I am an economically conservative person. This book does give a good summary of bullet points of the economic situations starting just before Kennedy and ending right after Reagan. It also give some good insight on the politics of the time. I would have made this a 3 star book if it stuck to facts rather than devolving into "I hate John M Keynes" every 3 seconds. We get it, you don't like him. Can we move on please?

I really did enjoy the narrative through history. It is a very enjoyable book.

[Casey Ervin · Rating 4 out of 5]

Way more history about the journey of Kennedy's bill than I needed. Probably could've cut this book in half. Still, the overall complexity of economics is just insane to me. The fact that people can dedicate their lives to studying this and have opposite ideologies shows how complicated it is.

Some really interesting information, with some skippable chapters peppered in.

[Malachi Weaver]

book is weird bc like the premise is "oh reaganomics is good bc it's the same as jfk's economic policy and you guys like jfk, right?" but then spends half the book meatriding jfk, 50 pages on lbj, another 50 on nixon, carter, herbert walker, clinton, and a bunch of economists that didn't even end up in the reagan administration, then just ends like "so that's why reagan was right qed nuff said"

[Steven Ryder · Rating 5 out of 5]

Excellent

Sets the historical record straight and offers clear and actionable guidance for future policy. An informative read for all Americans

[David Scott · Rating 4 out of 5]

Interesting to be reminded there used to be conservative democrats. There aren't too many today.

[Vance Ginn · Rating 4 out of 5]

The authors do a terrific job of capturing the historical details and events of the marginal income tax cuts that JFK helped orchestrate in the early 1960, and they were eventually passed into law after his death.

This period is compared with the tax cuts and reforms in the 1980s by Reagan. These types of tax cuts were first outlined by Treasury Secretary Mellon in the 1920s.

Given the wreckage that regulation and higher taxes has occurred under President Obama, this is great timing for this book.

I'm skeptical that tax cuts pay for themselves without spending growth slowdown or cuts. Spending is the disease and taxes are a symptom.

My skepticism is because there have been massive deficits with these tax cuts, including under W Bush. Starving the beast is a great idea, but contributing to excessive Fed policy based on discretion and not rules is a failed duo.

Overall, I recommend this book for its historical analysis and dynamic insight by true tax cutters.

[Michael Yoder · Rating 5 out of 5]

I gave this to my mother, she really loved it.

[Vive · Rating 4 out of 5]

This was interesting when I first read it, but I think it gives an extremely narrow view on the benefits and maladies of their administrations' policies.

[Allison · Rating 5 out of 5]

This is a great book for economic historical information, it gives you a glimpse of the financial picture of the 1950s. Great book for history, economic and financial people.

[Shannon · Rating 5 out of 5]

Worth reading, shows exactly how they brought prosperity to the US. I found it very informative and shows how the Democrats and Republicans have changed over the years in views and issues.