Where is the US economy headed?

EDIT: Cantor I think it was two days ago has already made it clear that the Obama "IT'S GOING TO BE MY WAY OR THE HIGHWAY!" approach will not work, it is disrespectful of Congress and the Constitution, and they they will nail him for trying to pull this BS.

I would also add that companies were strictly limited in their profiteering back then - which meant that more and more profits were actually pumped back into more jobs, and less into fat-cat pockets.

Cycloptichorn

Cycloptichorn wrote:

I would also add that companies were strictly limited in their profiteering back then - which meant that more and more profits were actually pumped back into more jobs, and less into fat-cat pockets.

Cycloptichorn

Please elaborate. What limits existed then on corporate profits that don't exist now?

The crisis of World War II led Congress to pass four excess profits statutes between 1940 and 1943. The 1940 rates ranged from 25 to 50 percent and the 1941 ones from 35 to 60 percent. In 1942 a flat rate of 90 percent was adopted, with a postwar refund of 10 percent; in 1943 the rate was increased to 95 percent, with a 10 percent refund. Congress gave corporations two alternative excess profits tax credit choices: either 95 percent of average earnings for 1936–1939 or an invested capital credit, initially 8 percent of capital but later graduated from 5 to 8 percent. In 1945 Congress repealed the tax, effective 1 January 1946. The Korean War induced Congress to reimpose an excess profits tax, effective from 1 July 1950 to 31 December 1953. The tax rate was 30 percent of excess profits with the top corporate tax rate rising from 45% to 47%, a 70 percent ceiling for the combined corporation and excess profits taxes.

I mistakenly assumed you were referring to the era before WWII.

Let see Spendius we blow apart the great depression by building tanks and war planes!!!!!!

Our wartime economy did indeed involve significant restrictions on profits by corporations. it also involved the rationing and assignment of commodities to producers and consumers by the government instead of markets, as well as wage and price controls - they all necessarily go together. This amounted to profound restrictions on the freedom and liberty of Americans, but was rationalized by the temporary exigencies of the war.

Is that what you are advocating now ?

We should have done this during the wars in Iraq and Afghanistan, yes. But instead, we did nothing to control profiteering and asked no sacrifice of our populace - and we got what we deserved in return, a mountain of debt, flat job growth, and negative wage growth. But the wealthy sure did great!

I wouldn't be upset for a second if an 'excessive profits tax' were imposed on US businesses. But, you knew that already.

Cycloptichorn

I think you would have a very hard time demonstrating that the loss of our manufacturing industry and its replacement by lower paying unskilled jobs in the service industry (the cause of flat wage growth & unemployment) was a consequence of the wars in Iraq and Afghanistan.

georgeob1 wrote:

I think you would have a very hard time demonstrating that the loss of our manufacturing industry and its replacement by lower paying unskilled jobs in the service industry (the cause of flat wage growth & unemployment) was a consequence of the wars in Iraq and Afghanistan.

For once, I agree with George.

I believe we're in a new era of understanding; georgeob said he agreed with me this week, and now Thomas...

cicerone imposter wrote:

I believe we're in a new era of understanding; georgeob said he agreed with me this week, and now Thomas...

I worry if George is feeling alright.

Cycloptichorn wrote:

We should have done this during the wars in Iraq and Afghanistan, yes. But instead, we did nothing to control profiteering Cycloptichorn

I think you would have a very hard time demonstrating that the loss of our manufacturing industry and its replacement by lower paying unskilled jobs in the service industry (the cause of flat wage growth & unemployment) was a consequence of the wars in Iraq and Afghanistan.