The Astonishing Stupidity of Not Raising Taxes on the Rich When Budgets Are Tight

By Larry Beinhart, AlterNet
Posted on March 1, 2011

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THE CURRENT ECONOMY is routinely and universally referred to as the worst recession since the Great Depression.

It makes sense, therefore, to look back at government tax and spending policies during the Depression and what the results were.

The GNP grows another 8.1 percent, and unemployment continues to fall.

The Great Depression is finally over.

When taxes were raised the economy improved. Every time. Deficits had no negative effect on the economy. Indeed, when deficits were at their highest, the economy boomed.

When taxes were raised again, and government spending went sky high, the Great Depression finally ended.