Comment on Really, ….. it's my fault they built a terrible system?

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dx1@lemmy.world ⁨1⁩ ⁨year⁩ ago

Several oversimplifications in a row. “Roaring Twenties” were fed by the nascent Federal Reserve ballooning the economy through the 20s and an inevitable contraction occurring at the end with a huge regulatory clampdown, expansion of the state and prolonged low interest rates/inflation into the 40s. The “top marginal tax rates” were essentially base rates and the effective rates paid were close to half that. A more meaningful metric is federal spending as % of GDP by year:

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which, taking into consideration that the economy has been growing in the last 80 years, indicates that federal spending has been gradually increasing ever since. The spike in the 40s is of course the enormous WWII spending.

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