...the corporate political machine went on the offensive and achieved a legislative agenda that would have profound and far-reaching impact. ... Virtually every economic bill that passed in 1978 had a political tilt in favor of business and the wealthy, often at the expense of the middle class... [my emphasis added].
Good, steady pay, and job security, they say, are the drivers of strong consumer demand, and strong demand stimulates economic growth. Business is moved to expand production and invest in new plants. Each expansion generates a new round of consumer demand. The virtuous circle keeps on generating growth, unless someone breaks the chain reaction.
Contrary to claims of anti-tax conservatives today that high taxes are a drag on the economy, the long postwar period from the mid-1940s to the mid-1970s was an era of strong, steady economic growth—much better growth that the past decade with its low tax rates. However plausible it sounds that high taxes on corporations and wealthy individuals cause them to invest less and take fewer risks, several decades of solid growth in the postwar period offer incontrovertible evidence to the contrary.
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P.S. 7/14 Next installment up now here.