A friend of mine showed me a copy of the June 29, 1964, edition of U.S. News & World report that he had recently dug out of his mother's home. It contained an interview with Walter W. Heller, chairman of Lyndon B. Johnson's Council of Economic Advisors.
Asked whether the president's tax cut policy encouraged consumer spending he said:
"The simple answer is "Yes." The 1962 investment incentives plus the over-all tax reduction of 1964 are having a major impact on both consumer and capital spending in the private economy."
Then asked about the possibility of future recessions and depressions, he said that government has the ability to keep recessions short and prevent another depression.
"I suppose a depression could be a possibility, but only in the event of very unwise Government and private policy." (Paging President Obama!)
Does that mean further cuts in taxes, the magazine asked.
Said Heller: "That's one possibility."
In later years, Heller's consistent call for a balanced budget and his use of tax cuts to stimulate economic growth sparked the thought of "supply side economists" supported by President Ronald Reagan.
Makes you wonder how far left has this country shifted? Seems to me the Obama Administration could save the country a lot of misery if by trying to learn a little from old-time "liberals" like Walter W. Heller.