Taking the country back, one talking point at a time
Unfortunately, some people are to stupid to learn from their mistakes.good post. the rat
Thanks, Rat! Good to have you aboard.
Interesting, but keep in mind there's much more to the correlation than the taxes paid by the wealthy. There's the fact that their low, low tax rates are one indication of political influence and power the wealthy had been wielding for some time before the collapses, with all that meant for others and for the economy as a whole.There are other correlations, too. In 1929, a whole lot of people who knew nothing about the financial markets and investing had sunk money in stocks. That inflated stock values wildly. That condition exists today, with too many investors bidding up the prices of securities of all kinds to insane levels. This is the pressure of so many paycheck workers being shunted away from pension plans and into 401k's, IRA's and the funds and stocks they buy on their own trying to have a good retirement. It's been especially pronounced in recent years because of baby boomers approaching retirement in huge numbers. In the recent implosion, households and businesses were way overleveraged, creating a house of cards.The real correlation is probably that, again, too many people are doing the same questionable things at the same time, blissfully unaware of, or with utter disregard for, the fact that such situations invariably end badly.
...and you know what the truly funny thing is?No matter what the tax rate is- even when it was at 94%- somehow the Federal Government has never managed to pull in more than 28% of GNP.Meanwhile, this POTUS is spending MORE than 28% of GNP... the budgets over the last four years have far exceeded 1 Trillion Dollars in deficits for the first time in the history of this country.We don't have a problem with income (taxes). We *do* have a serious problem with expenditures, and have ever since the Democrats took the House of Representatives in 2006 (the branch of Congress that actually funds the Federal Government.)THAT is the true reason we're as bad off as we are.And I do agree with Mohave Rat- some people ARE too (sic) stupid to learn from their mistakes. Consider that when tax rates have been reduced and the government got the hell out of the way (Reagan, Kennedy), the economy rebounded. This POTUS wants to raise taxes and add 2700 pages of new 'rules' (Obamacare) which is intentionally slowing economic growth to the point this is the worst "Recovery" on record.-- S.
While the historical correlation is interesting, I find Steve's comment more interesting. The economic mess is not one thing or one person's fault. It took 40 years of bad economic policy to bring us to where we are today. Both sides had an active part in screwing this up.
Good chart, J. True about lessons learned from history. I suspect some of what MRMacrum says is true, and blaming it all on one party is probably not correct. Trying to solve the current deficit issue solely by cutting spending or solely by increasing revenue won't work. At least both sides are offering solutions that incorporate both approaches. The Dems don't want to cut the spending as drastically, and want to return to the kinds of higher rates shown in the chart. The GOP wants to cut spending drastically and to totally avoid the higher rates shown in the chart. I opt with the left's approach in this case. Increase the revenue, go a bit more gradually on the cuts, but still make cuts. It's a mess, however one looks at it. But probably time to quit blaming the other side, and probably time to try and work with them, which doesn't mean doing whatever the other side says. There is going to have to be some give and take, and if a handful of politicians refuses to budge because of ideology, lots of people are going to suffer financially.
Name one time, just ONE TIME, in recent history (last 40 years) that when Democrats promised spending cuts that they've followed through.I'd be interested in knowing. I don't think you'd be able to find one instance.-- S.
I agree, Snave. The problem is truly too large to be solved without compromise by both sides.
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