Quote:
Originally Posted by MS Fowler
That is true, but not complete.
The 50-60s were an aberration on the world economic stage. Except for the US, all other major industrial powers were rebuilding from the devastation of WW2. The US, alone, had all of its manufacturing intact. Not only that, everything had geared up for the war effort, and there was excess capacity waiting for needs to be filled.
Can't say that all that was the sole ingredient of the economy, but it surely is too important to ignore.
As for the robbing of funds--it is not irrelevant. Certain taxes were collected for specific funds. Robbing those funds, and then demanding additional taxes to pay for what the specific fund was set up to do is just arrogant.
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Sure there are many factors, but the fact that the deficit decreased while tax rates were high (by percentage) should not be ignored.
Robbing funds: It is the total spending vs revenue that is most important.
It is strange how we have SS separate from the rest of the budget/taxes.
Without raising revenues we will still be in trouble years from now.
1. The deficit will continue to rise until the market demands yields in the teens.
2. Spending cuts will be so large that those who lose benefits will actually use their right to vote.