The aphorism "a rising tide lifts all boats" is associated with the idea that improvements in the general economy will benefit all participants in that economy, and that economic policy, particularly government economic policy, should therefore focus on the general macroeconomic environment first and foremost.
Video A rising tide lifts all boats
Origins
The phrase is commonly attributed to John F Kennedy, who used it in a 1963 speech to combat criticisms that a dam project he was inaugurating was a pork barrel project. However, in his memoir Counselor: A Life At The Edge Of History, Kennedy's speechwriter Ted Sorensen reveals that the phrase was not one of his or the then President's own fashioning. It was in his first year working for Kennedy, during JFK's tenure in the Senate, when Mr. Sorensen was trying to tackle economic problems in New England, that he happened upon the phrase. He writes that he noticed that "the regional chamber of commerce, the New England Council, had a thoughtful slogan: 'A rising tide lifts all the boats.'" From then on, JFK would borrow the slogan often. Sorensen highlights this as an example of quotes mistakenly attributed to President Kennedy. In subsequent decades, the phrase has been used to defend tax cuts and other policies where the initial beneficiaries are high-income earners.
Maps A rising tide lifts all boats
Meaning
The expression also applies to free-market policies, in that comparative-advantage production and subsequent trade would theoretically increase incomes for all participating entities. It is said to be a favorite proverb of former U.S. Treasury Secretary Robert Rubin.
However, the term has also been used in recent years to highlight economic inequality. Gene Sperling, Bill Clinton's former economic advisor, has opined that, in the absence of appropriate policies, "the rising tide will lift some boats, but others will run aground." British Labour MP Ed Miliband said at a party conference that "they used to say a rising tide lifted all boats. Now the rising tide just seems to lift the yachts." New Zealand Labour MP David Parker has stated that "We believe that a rising tide of economic growth should lift all boats, not just the super yachts."
See also
- Keynesian economics
- Supply-side economics
- Trickle-down economics
References
External links
- Hines, James R., Hilary W. Hoynes, and Alan B. Krueger. "Another Look at Whether a Rising Tide Lifts All Boats", National Bureau of Economic Research: NBER Working Paper No. 8412, August 2001.
Source of article : Wikipedia
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