Do you remember being taught the glories of FDR’s New Deal policies in school? It seems that the New Deal may have actually prolonged the Great Depression instead of alleviating its ills. New Deal or Raw Deal? by Burton Folsom, Jr. explains how Roosevelt’s policies stifled business (especially small businesses), made earning a living especially hard for low income earners, and kept America behind Europe in economic recovery. Folsom even contends that it wasn’t World War II that pulled the U.S. out of the Depression; rather, businesses were more inclined to invest when the political climate was friendlier at the end of FDR’s term and during Truman’s presidency, which made capital flow again.
One interesting fact: At one point, Roosevelt taxed all personal income over $25,000 at a 100% rate, reasoning that nobody would ever make that much money. Amazing!
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So if you made over $25,000 everything above that mark went to the government?! I just read a quote by the Brazilian president in which he said "it was necessary to first build capitalism, then make socialism, we must have something to distribute before doing so." At least he's honest about his approach unlike America's progressive socialists.
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