[FD3SA]

That, in combination with the ~50% tax rate on income and capital gains. Turns out, when you redistribute wealth, consumption increases so rapidly that the economy takes off.

That no longer is much of an option, as wealthy individuals have not only managed to reduce capital gains to ridiculously low levels, but also diversified their holdings throughout the globe. This makes taxation a poor tactic, as capital will just flow to tax havens as the rate increases.

Turns out that feudalism is the natural state of man, and reprieves from it are quite temporary anomalies.

For those interested in details, Thomas Piketty's Capital is an excellent reference on the subject. Also, the movie Inequality for All is a far more approachable presentation based on the book.

[fennecfoxen]

Naaah. The post-war revival in the economy was largely a result of having dismantled the FDR New Deal and its attendant control economy. No, not the Social Security part or anything like that - the part where politicians and regulators thought competition was bad for consumers, and spent the decade propping up their preferred cronies with price controls and selective bailouts and other such nonsense. With the politicians, of course, receiving ample campaign contributions in return. Taxes still damage the economy, it just turns out there are things that can damage an economy more than taxes. :)

Ah, the New Deal, when our leaders thought they could lead us out of famine and into prosperity by burning crops. Birthplace of big-agribusiness! Et cetera.

[djur]

Most of the price control/cartel parts of the New Deal were partly or entirely dismantled before the war. Of course, a new set of price controls were set up during wartime, but those were not New Deal programs.

What survived from the New Deal were the Keynesian stimulus programs, which were generally very successful, lasted through the war and up through the '70s, and some to this day.

[CamperBob2]

Turns out, when you redistribute wealth under specific historical circumstances that no longer prevail, consumption increases so rapidly that the economy takes off.

[hagbardgroup]

I disagree with you in part, but would rather not debate it online.