Rshermr
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- #81
Pointing toward the 1920's is really interesting. The 1920's were a period of setting up the US economy for the greatest depression in US History. Funny.Tax Increases and DeficitsSo, listening to the cons on this board, you would think that the whining employees of this country, the lazy middle class, are completely at fault for their economic reality. This article looks at the issue from a non partial point of view.
Top 1% Got 93% of Income Growth as Rich-Poor Gap Widened - Bloomberg
So, maybe a good look at what is being said in this study can generate some discussion. Over the years, my reading of the subject of income distribution heavily weighted to the top is a really really good indication of the end of the reign of leading economies.
But always, always, the wealthy fight any changes, clear to the bitter end.
The other question that comes to mind is obvious. Is this the country that you expected to see, and is it the economy that you want to live with.
Whereas the federal budget was balanced throughout
the low-tax 1920s, the huge tax increases of the 1930s
coincided with large deficits. On the campaign trail in
1932 Roosevelt noted: For over two years our federal
government has experienced unprecedented deficits, in
spite of increased taxes.3 Under Roosevelt, however, total
federal tax revenues jumped from $1.9 billion in fiscal
year 1932 to $6.5 billion by FY1940. Yet, the FY1940
deficit of $2.9 billion was larger than the FY1932 deficit
of $2.7 billion (see Figure 1). That tripling of tax revenues
occurred during a near-zero inflation period. (In 1938, a
near budget balance occurs because of a sharp drop in
veterans spending and a sharp tax increase under the new
Social Security payroll tax).
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http://www.cato.org/pubs/tbb/tbb-0303-14.pdf