Posted at Hartmann Report on Dec. 24, 2023
Reaganomics Ensured American Leisure for the Few, Not the Many
The Hidden History of Monopolies: How Big Business Destroyed the American Dream.
As productivity continued to rise, due to increasing automation and better technology, so too would everyone’s wages. Or so went the theory.
The glue holding this logic together was the then-top marginal income tax rate. In 1963, just before the Time article was written, the top marginal income tax rate was 90%. What that did was encourage CEOs to keep more money in their businesses: to invest in new technology, to pay their workers more, to hire new workers and expand.
After all, what’s the point of sucking millions and millions of dollars out of your business if it’s going to be taxed at 90% (or even the 74% that President Lyndon Johnson lowered it to in 1966)?