What the US needs at this point is someone willing to advocate a return to the economic institutions that made America great – 90 per cent top marginal tax rates, strong trade unions, weak banks and imprisonment for malefactors of great wealth.
There\’s two things wrong with this idea.
1) It\’s necessary to show the causality, not just the correlation, here. How did 90 % top marginal income tax rates make America great? There are a number of alternative explanations out there about the post-WWII growth for example: like that it was catch up from the huge improvements in technology and productivity in the 30s and 40s just as one that\’s recently been floated.
I could see that high tax rates on rent seekers could be a good thing: high tax rates on entrepreneurs not so much.
2) If these policies were such good things in the 1950s and 60s then why was it that they entirely screwed up in the 70s? And if they did screw up the 70s then what is it about the \’teens that means they\’d be a good idea again?