I’m new to the Austrian school, and in my discussions with some of my leftist friends, I’ve seen the GDP growth after WWII cited as evidence that high taxes do not slow economic growth. I’ve read several articles talking about the situation and how many people really were in that top tax bracket, an…

Not to worship at the alter of GDP, but… End of war is a good enough cause for growth (or should we just call it rebuilding?). War destroys wealth. If you stop war, then you stop the wealth destruction; the misallocation of resources (well not completely, you still have governments). WWII saw …

It doesn’t matter. The point is: Their comparison method is totally arbitrary and conceptually wrong. The tax rate in 1951 is not solely responsible for growth in 1951. In fact, growth in 1951 probably depends upon all the stuff decades beforehand. They are cherry picking. Ask them to explain …

http://www.youtube.com/watch?v=apdeR_KYhH0 You really need to watch this. Robert Higgs - Myth of war prosperity

Along with what the others said, I think the fundamental problem is with the GDP measure itself. In no way does it take into account whether people are acting in accordance with their highest preferences - that is, it doesn’t take into account the broken-window fallacy.

I think it is important to know that the post-war boom was not a unique phenomenon, but rather a return to normalcy. The west had seen such fabulous growth before, prior to the world wars. The Progressive era with it’s world wars and the great depression then destroyed that growth, and after the eff…

It does’t take into account anything other than money changing hands.

I have never heard that term, doesn’t show up on google. Could you explain?

GDP growth during the high tax periods in the '50's

Economics Economics Questions

Snowflake May 11, 2011, 9:31am 3

You are guilty of using isotemporal post-hoc-ergo-propter-hoc logic.

See here for rant/trolling.

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GDP growth during the high tax periods in the '50's

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