Tax Cuts for the Rich: A History of Failure

Warren Buffett has spent a good chunk of the last two decades trying convince middle-class America that “trickle down economics” hasn’t worked. In fact, he has gone as far as to refer to it as “the biggest con job ever conducted”.

Yet more and more American’s just line up to drink the Kool Aid, choosing to believe otherwise. Here are some facts from the New Deal  that should dispel the myth that is Reaganomics once & for all:

“I Like Ike!”

Republican President Dwight D. Eisenhower took office in 1953. The top tax rate stayed frozen at 91% his entire presidency and remained so throughout JFK’s.

A Republican president taxed the rich 91%. Amazing huh? Things must have been horrible in the 50’s, right?…

  • Presided over one of the most prosperous and thriving economies in American history.
  • Balanced the budget and created a moderate surplus (The last Republican President to do so)
  • Kept inflation near zero and unemployment low
  • Created nearly 4 million jobs (Factor in that the population in the 50’s was less than half of what it is today)
  • Witnessed steady job growth  in all sectors
  • Expanded Social Security
  • Created the International Highway System & NASA
  • Increased Minimum Wage
The only downside was a world-wide recession in 1957 caused by foreign trade deficits that lasted 8 months. It raised unemployment to 6.2% but we quickly rebounded.
Who knows how the economy was so good under a rich-taxing, government agency creating socialist like Eisenhower… He must have just lucked out!
We’ll skip ahead a few decades and see how a real conservative does it…

2 thoughts on “Tax Cuts for the Rich: A History of Failure

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