Quote:
Originally Posted by Z06PDQ
so, you think the boom of the 1950's when tax rates were at 91% under Eisenhower was just a fluke?  |
What "boom" ??? This is a MYTH. Average annual REAL GDP growth under Eisenhower was a mere 3%. Things seemed "Golden" because ANYTHING is Golden compared to World War and Depression. In 1950 and 1951 only, we experience a short boom (Truman was still in office) as we recovered from the 1945-1949 recession (that's right, in addition to the great depression, new deal economic policy managed to get us into a slump AGAIN immediately after the war). During Eisenhower's term, we experience big growth in 1955 and 1959 only, with the remaining 6 years added in giving us an average of only 3%. Lower than during the Kennedy/LBJ admin, the Reagan admin, hell, even the Carter admin.
For comparison, the number rose to 4.9 % during the 8 years of Kennedy/Johnson.
Under Kennedy/LBJ, BTW, we reversed course, cut taxes, and looked to the private sector to promote economic growth. Eisenhower's administration was the first peace time and non depression time test of New Deal tax and economic policy. It proved inferior, however to give credit where credit is due the highway construction under Eisenhower
WAS a fantastic idea. But the emphasis on govt. as the driver of economic expansion stifled that expansion.
BEA National Economic Accounts