Cenk's 'Shared Sacrifice' Tax Plan (W/ Poll) | 48 comments (48 topical, 0 hidden)
Tom (none / 0)

I read your response, and read down below, and I'm confused about where you stand.  The thing that FDR did during the depression, that economists today--such as Ben Bernanke--give him credit for, is deficit spending.  As you mention below when FDR backed off, listened to Republicans of the day, and tried to balance the budget by raising taxes, the economy softened again in 1937.

My whole point has been that we should put off tax cuts for now. 

by publius on 03/28/2009 12:37:42 PM EST

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No, no, no (none / 0)
Yes he raised taxes, and obviously the Republicans back then HATED tax increases! Their big plan as always was cutting everything. I agree that raising taxes and doing nothing else would be very stupid. But that's not what happened.

Taxes were raised AND spending decreased, the same spending that was lifting the economy up and reducing unemployment significantly. That was my point earlier, the last thing we need to worry about *right now* is balancing the budget. That mentality is what delayed us in 1931-1938, trying to appease R's and "centrists" by focusing too much on balancing the books.

PS---Never forget that the Great Depression was directly preceded by 5 consecutive tax cuts (and 3 Republican Presidents promoting Deregulation---Harding, Coolidge & Hoover).

And it led to (surprise)

by Tom Hanc on 03/28/2009 12:56:47 PM EST

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Obviously I meant 1937-1938 (none / 0)
.

by Tom Hanc on 03/28/2009 12:59:56 PM EST

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Cenk's 'Shared Sacrifice' Tax Plan (W/ Poll) | 48 comments (48 topical, 0 hidden)