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September 1, 2011
The Flip Side of the 'It Would Have Been Much Worse' Excuse For Failure.
First, the current recession is not the worst economic downturn other than the Great Depression of the 1930s. The Great Depression of 1920 brought unemployment of 11.7% (from 1.4% in 1919) and a drop in the stock market of 47%. The top tax rate at that time was 73%.Arguing against the Progressives who called for stimulus, Secretary Mellon and President Coolidge instead choose to cut the top tax rate of 73% down to 25%, stimulating the economy along with job growth driving unemployment back down to 3.2%.The current argument by the Obama administration that "it would have been much worse if not for the stimulus" is little more than a lame excuse for failure. In fact, only two economic downturns in our history have extended well beyond the usual 18 months. The two that have been turned into long drawn out painful events exceeding all others are The Great Depression of the 1930s and the current recession. Both are unique in that the Liberal Progressives, with little or no political...(Read Full Post)