4 ms·

Can you show me where history says hard money is bad? https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/ This makes a compelling case that abandoni

Can you show me where history says hard money is bad? https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/ This makes a compelling case that abandoning hard money is exactly where we went off the rails and the money started flowing straight to the top.

arcticbull 5y ago
You know what else happened in 1971? The top marginal tax rate in the US dropped from 90% in 1963 to 30% in 1983. The bottom tax rate was 0% in the 1970s and it's now 10%. A compression of 70%. [2] The estate tax went from 80% to 30% by 2010 [4], and is now roughly speaking eliminated (the exemption is now almost $12M) [3]. The minimum wage went from an inflation-adjusted $12 to today's $7.25 [5]. This all while the tools of social mobility (education, health care) were allowed to run way in excess of inflation in the US. Way in excess. [edit] Union participation went from 25% in the 1970s to 10% today and the wage growth is almost perfectly inversely proportional to union participation. [6] Check out the wage distribution on page 12. None of this is monetary policy, it's 100% social policy. That's why inequality started to really accelerate. If you decide that the rich should keep 7X more of their take home pay, yeah, they get richer. If you decide the rich should be able to pass on their estates to their kids tax-free, their kids get richer. If you make education harder to obtain, the already-rich have a leg up. If you make healthcare impossible to obtain, the already-rich don't die. If you want to reduce inequality advocate for unions, advocate for inflation-adjusted minimum wage, pegged at a notional $15/hr and kill the tipped minimum wage of $2.13/hr. Advocate for socialized medicine. Advocate for free college. Advocate for all the shit that Europeans have. Advocate for more meaningful progressive taxation, increasing the top end and bringing the bottom end below zero. Bring back a 90% estate tax. Bring in mandatory sick leave and 6 months of paid mat/pat leave! Check out the Europe vs. US graph on Page 6 [1]. Europe is also centrally banked, and also exited the gold standard by 1973. Correlation != causation. Your cause is noble but you're tilting at wrong windmills Quixote! :) None of this changes under hard money! This is the outcome of 50 years of ultra-conservative social policies. [1] https://ec.europa.eu/info/sites/default/files/economy-finance/dp079_en.pdf https://ec.europa.eu/info/sites/default/files/economy-financ... [2] https://commons.wikimedia.org/wiki/File:Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg https://commons.wikimedia.org/wiki/File:Historical_Marginal_... [3] https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States#/media/File:Estate_Tax_Returns_as_a_Percentage_of_Adult_Deaths,_1982_-_2010.gif https://en.wikipedia.org/wiki/Estate_tax_in_the_United_State... [4] https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States#/media/File:US_Top_Estate_Tax_Rate.png https://en.wikipedia.org/wiki/Estate_tax_in_the_United_State... [5] https://www.pewresearch.org/fact-tank/2017/01/04/5-facts-about-the-minimum-wage/ https://www.pewresearch.org/fact-tank/2017/01/04/5-facts-abo... [6] https://www.hamiltonproject.org/papers/the_shift_in_private_sector_union_participation_explanations_and_effects https://www.hamiltonproject.org/papers/the_shift_in_private_...
- JohnJamesRambo 5y ago
  How do you know all those things weren’t caused by leaving the gold standard?
  - arcticbull 5y ago
    Because if you look at Europe, they left the gold standard at the same time and had totally different outcomes. If leaving the gold standard was the sole/principal, inescapable cause then Europe would track the US in this regard over the same time period. It does not. I provided you a link to an EC report on the matter as [1]. It's good reading!

arcticbull 5y ago

You know what else happened in 1971? The top marginal tax rate in the US dropped from 90% in 1963 to 30% in 1983. The bottom tax rate was 0% in the 1970s and it's now 10%. A compression of 70%. [2] The estate tax went from 80% to 30% by 2010 [4], and is now roughly speaking eliminated (the exemption is now almost $12M) [3]. The minimum wage went from an inflation-adjusted $12 to today's $7.25 [5]. This all while the tools of social mobility (education, health care) were allowed to run way in excess of inflation in the US. Way in excess. [edit] Union participation went from 25% in the 1970s to 10% today and the wage growth is almost perfectly inversely proportional to union participation. [6] Check out the wage distribution on page 12. None of this is monetary policy, it's 100% social policy. That's why inequality started to really accelerate. If you decide that the rich should keep 7X more of their take home pay, yeah, they get richer. If you decide the rich should be able to pass on their estates to their kids tax-free, their kids get richer. If you make education harder to obtain, the already-rich have a leg up. If you make healthcare impossible to obtain, the already-rich don't die. If you want to reduce inequality advocate for unions, advocate for inflation-adjusted minimum wage, pegged at a notional $15/hr and kill the tipped minimum wage of $2.13/hr. Advocate for socialized medicine. Advocate for free college. Advocate for all the shit that Europeans have. Advocate for more meaningful progressive taxation, increasing the top end and bringing the bottom end below zero. Bring back a 90% estate tax. Bring in mandatory sick leave and 6 months of paid mat/pat leave! Check out the Europe vs. US graph on Page 6 [1]. Europe is also centrally banked, and also exited the gold standard by 1973. Correlation != causation. Your cause is noble but you're tilting at wrong windmills Quixote! :) None of this changes under hard money! This is the outcome of 50 years of ultra-conservative social policies. [1] https://ec.europa.eu/info/sites/default/files/economy-finance/dp079_en.pdf https://ec.europa.eu/info/sites/default/files/economy-financ... [2] https://commons.wikimedia.org/wiki/File:Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg https://commons.wikimedia.org/wiki/File:Historical_Marginal_... [3] https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States#/media/File:Estate_Tax_Returns_as_a_Percentage_of_Adult_Deaths,_1982_-_2010.gif https://en.wikipedia.org/wiki/Estate_tax_in_the_United_State... [4] https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States#/media/File:US_Top_Estate_Tax_Rate.png https://en.wikipedia.org/wiki/Estate_tax_in_the_United_State... [5] https://www.pewresearch.org/fact-tank/2017/01/04/5-facts-about-the-minimum-wage/ https://www.pewresearch.org/fact-tank/2017/01/04/5-facts-abo... [6] https://www.hamiltonproject.org/papers/the_shift_in_private_sector_union_participation_explanations_and_effects https://www.hamiltonproject.org/papers/the_shift_in_private_...

JohnJamesRambo 5y ago
How do you know all those things weren’t caused by leaving the gold standard?
- arcticbull 5y ago
  Because if you look at Europe, they left the gold standard at the same time and had totally different outcomes. If leaving the gold standard was the sole/principal, inescapable cause then Europe would track the US in this regard over the same time period. It does not. I provided you a link to an EC report on the matter as [1]. It's good reading!