For Business, It's 1920 All Over Again

By Tom Del Beccaro, on Aug 31, 2011

My latest on Big Gov't . . .

For Business, It's 1920 All Over Again - American political fortunes have long been tied directly to the economy… so you would think that politicians would do a better job understanding how to improve the economy.  We know consumer demand is down – because consumers don’t have the money or home equity they used to have.  That alone is keeping the economy down.  Businesses, however, are said to have money but they are not spending or investing it.  Why? Because for them it’s the early 1920’s all over again.  read more

 

 


I'm not sure I agree with your correlation on taxes here.  Yes the top marginal tax rates jumped from 7% to 77% between 1913 and 1918 and you are correlating this with something negative.  But the top marginal tax rates were over 90% during the post world war 2 boom.  

http://ntu.org/tax-basics/history-of-federal-individual-1.html

These taxes on the richest Americans hve dropped dramatically over the last 30+ years and we've seen a resurgence in wealth inequality and a looming debt.  Can we blame all of this (and the recent near Great Depression 2.0) on the fact that top marginal tax rates have dropped from 70% to 35%?

http://www.obamaftw.com/blog/taxes/tax-decreases-do-not-increase-revenue

 

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