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Study: "Debt Problem Began Four Decades Ago"

Kyll-Why-T Wrote: Jan 22, 2013 8:49 AM
coveyrise sez....."No Nation in History has ever TAXED it's way to prosperity. During the 1950s and 1960s the US produced most of it's own consumer goods and all of it's own energy needs. This is when we saw the real growth of what we like to call the Middle Class" So you advocate policies similar to those of the 50s and 60s? Unions were at the height of their power during that time, the top marginal tax rate was over 90% at one point during the 50s (to pay back all that war debt, back then the US paid it's debts), and infrastructure and education investments were huge. Eisenhower even designed the Interestate highway project so that he could increase the rate of govt spending (and employment) when the economy slowed down.
Chestertonfan Wrote: Jan 22, 2013 9:26 AM
Don't forget that in those days, Europe and Japan were devastated, there was no productive China, Taiwan, Korea, etc, Britain was bankrupt. The US was virtually alone as a productive power. Couldn't last, yet people (unions and gov't and poorly run companies) expected it to.
A new report from the Federal Reserve Bank of St. Louis reminds Americans that, contrary to the narrative that huge deficits and debt are merely a recent product of the Great Recession, the problem began over forty years ago.

Daniel Thornton, the St. Louis Fed's Vice President and economic adviser, finds what conservatives have been saying all along is true: it's steadily increasing government spending, not a lack of tax revenues, that's causing all of this.

[A]fter 1970, both revenues and expenditures increased on average relative to the previous two decades; however, revenue increased marginally while...
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