On a finite, over-crowded planet, any ideology with a slavish devotion to "more", will self-destruct. Oh, look...
April 9, 2016
April 9, 2016
Probably, but that doesn't mean we can go back...
According to this article America was undermined by a Communist plot. Of course the exact opposite is true, it was a capitalist plot. Let's apply some inconvenient facts and reality...
After WWII, the United States had a massive competitive advantage over war-obliterated Europe, Japan, and all of Asia. That "dividend" ran out by the 1960s.
There were more manufacturing jobs in the 1950s than there are today, despite a doubling in the US. population:
Tax rates were FAR higher for the wealthy in the 1950s than they are today. The top marginal tax rate in 1956 was 91% (which was asinine, and not something to go back to, what's needed are the wealthy to actually pay the top tax rate).
Corporate profits as a share of GDP were LOWER in the 1950s, than they are today. CEO pay as a multiple of average employee pay was far lower.
Corporate profits and GDP both indexed to 1953:
Wages as a share of GDP were far higher than they are today.
Wealth inequality in the 1950s was far lower than it is today.
There was a trade surplus instead of a trade deficit. For some reason most people still don't know that trade deficits equal axiomatic debt accumulation.
U.S. Fiscal Debt versus Balance of Trade:
There was no such thing as Free Trade.
So, instead of this being a "Communist" plot to undermine the U.S. economy, it was a Capitalist plot that undermined the U.S. economy.
Foodstamps versus Corporate profits
Foodstamps versus Corporate profits
Ironically the people advancing these specious arguments are the main reason this all happened i.e. an unfounded sense of historical entitlement that was systematically consumed to make the quarter.
