Walter Heller

Walter Heller. He was a prominent American economist who served as the Chairman of the Council of Economic Advisers under Presidents John F. Kennedy and Lyndon B. Johnson. A leading architect of Keynesian fiscal policy in the 1960s, he was instrumental in designing the Revenue Act of 1964 and advocated for the use of targeted tax cuts and spending to manage the business cycle. His work significantly influenced the economic philosophy of the New Frontier and the Great Society.

Early life and education

Born in Buffalo, New York, he was the son of a German-born civil engineer. He attended Oberlin College, graduating with a degree in economics in 1935. He then pursued graduate studies at the University of Wisconsin–Madison, earning his master's degree in 1938 and his doctorate in 1941. His doctoral dissertation focused on state income tax systems, foreshadowing his later federal policy work. His studies were influenced by the economic turmoil of the Great Depression and the emerging ideas of John Maynard Keynes.

Academic career

After completing his PhD, he began his teaching career at the University of Wisconsin–Madison before serving in the Treasury Department during World War II. In 1945, he joined the faculty of the University of Minnesota, where he spent the majority of his academic life, eventually becoming a Regents' Professor of Economics. At Minnesota, he was a respected teacher and researcher, focusing on public finance and fiscal policy. He also served as a consultant to the Congressional Joint Economic Committee and the State Department before his appointment to the White House.

Chairman of the Council of Economic Advisers

Appointed by President John F. Kennedy in 1961, he transformed the Council of Economic Advisers into a powerful and proactive force within the Executive Office of the President. He assembled a talented staff, including future Nobel laureate James Tobin and Arthur Okun. He successfully persuaded President Kennedy to propose a major tax cut to stimulate the economy of the United States, arguing it would expand the gross national product. This proposal, enacted after Kennedy's death as the Revenue Act of 1964 under President Lyndon B. Johnson, is considered a landmark application of Keynesian economics. He also championed the concept of the "full employment" budget surplus.

Economic philosophy and influence

A pragmatic Keynesian, he believed in the use of discretionary fiscal policy—specifically tax cuts and increased federal spending—to combat recession and achieve economic growth. He was a key advocate for the "New Economics," which sought to fine-tune the American economy to prevent both high unemployment and inflation. His ideas directly shaped the Kennedy administration's approach to ending the Recession of 1960–61 and were central to the economic underpinnings of the Great Society programs. He frequently engaged in public debates, writing for publications like *The Washington Post* and appearing on programs such as *Meet the Press*.

Later career and legacy

After leaving the Johnson administration in 1964, he returned to the University of Minnesota. He remained an influential commentator, serving as president of the American Economic Association in 1974. He continued to advise policymakers and wrote extensively on issues like income tax reform and monetary policy. His legacy is that of the foremost public economist of his generation, who successfully translated academic Keynesian economics into practical government policy, leading to the longest period of continuous economic expansion in modern American history up to that time. The Walter Heller Award at the University of Minnesota is named in his honor. Category:American economists Category:1915 births Category:1987 deaths Category:University of Minnesota faculty Category:Chairs of the Council of Economic Advisers