David Brin: Conservatives keep pushing fairy tales about taxes and job creation
Who was right? Blatantly, the Keynsian approach worked in the 1940s, when massive government spending on WWII resulted in a boom that ended the Great Depression. A boom that then continued for 30 years, till Vietnam crushed it against a wall. Throughout that period, high tax rates and stimulative spending seemed to work, whenever the economy needed a little help. Moreover, during that era, a very flat social structure – (CEOs earned only a few times what factory workers did) – combined with the most rapid growth of the middle class and the most vibrant era of startup capitalism in human history.