Posner Calls It a Depression

The honorable judge has gone a bit daffy. He writes

By undermining faith in free markets, the depression opens the door to more government intervention in the economy and eventually to higher taxes (though probably not until the economy improves). These are not necessarily bad things. Obviously neither the optimal amount of government intervention nor the optimal level of taxation is zero.

So if we accept that the optimal amount of government intervention is not zero, then what?  In a leap of idiocy, a non sequitur of numbing grossness, the judge concludes the optimal level is somewhere between the Truman presidency and the Johnson years. What a joke. 

So taxes will have to rise. Federal taxes as a percentage of Gross Domestic Product are no higher today than they were in the 1940s, 1950s, and 1960s—periods of healthy economic growth. The marginal income tax rate reached 94 percent in 1945 and did not decline to 70 percent until 1964 (it is 35 percent today). A modest increase in marginal rates from their present low level would increase tax revenues substantially…


1 Comment

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One response to “Posner Calls It a Depression

  1. A friend of mine just emailed me one of your articles from a while back. I read that one a few more. Really enjoy your blog. Thanks

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