Kennedy had a few problems facing him upon his election. The first of these was a shaky balance in Congress. The Democrats held a small majority, but some older members were teaming up with conservatives to minimize spending of federalized healthcare and education. Recession and inflation also left their marks upon the U.S economy. In 1962, the government made a sort of pact with the steel industry: Noninflationary wage standards and an assumed stop to the rise of prices. This of course, could not be helped due to the newly formed OPEC (1960). Prices rose, Kennedy got mad, and big business grew resentment against the New Frontier. Kennedy cut taxes and restored business to private hands. Kennedy decided to raise morale and jobs by joining the space race with more enthusiasm, putting Alan Shepherd and Neil Armstrong on the moon.
On an international level, Western civilization and its previous colonies were facing issues. Britain withdrew from Africa, and France from Laos, in the sixties. The new nations immediately plunged into civil unrest, forcing UN intervention. The U.S. sent massive funds but no manpower to quell the violence, but to little avail. Kennedy and his defense secretary (Robert S. McNamara) culminated the plan of flexible military response. This provided different levels and options of military involvement for political purpose, allowing for the military involvement of the decade that would follow. The Kennedy administration would support Diem with “military advisors” and increased involvement.
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