Quote:
Originally Posted by Ethersync
We were on a gold standard until 1971 so printing money was not an option like it is now. If money was needed taxes went up. We were also a creditor nation. We were lending money to other countries and not borrowing like now. Also, our actual tax rate is not entirely accurate because we are taxed through inflation now more so than ever. $1 in 2010 was worth $0.18 in 1970. There was also WWI and WWII to pay for and the US largely funded the rebuilding of Europe after WWII.
The bottom line is the problems we face now were not in any way caused by tax cuts nor was Great Depression 1.0 and anyone saying so is misinformed.
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Don't forget the fed reserve and all the jazz that goes with that.
Knowing what the tax rates were pre 71 almost makes the gold standard sound scary. Yeah more real wealth, lower inflation but damn if they let anyone keep it.
True, none of the problems we have today or then were due to tax cuts... however, todays tax cuts are adding to problems with the way things currently operate.