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As the 1960's in the US unfolded, both President Kennedy and even more so President Johnson were willing to increase military expenditures overseas, and not only in Vietnam. Those expenses and both administration's desire to increase domestic programs without raising taxes paved the way for inflation later on. Year after year of government deficits lead to soaring prices and the lack of growth in US domestic industries. This in turn led to larger balance of payment deficits.

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Q: How did the Kennedy and Johnson administrations lead to economic problems in the US?
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