The Twinkie, it turns out, was introduced way back in 1930. In our memories, however, the iconic snack will forever be identified with the 1950s, when Hostess popularized the brand by sponsoring “The Howdy Doody Show.” And the demise of Hostess has unleashed a wave of baby boomer nostalgia for a seemingly more innocent time. Needless to say, it wasn’t really innocent. ... in the 1950s incomes in the top bracket faced a marginal tax rate of 91, that’s right, 91 percent, while taxes on corporate profits were twice as large, relative to national income, as in recent years. The
Comments: Once again Krugman shows he has totally lost it. That 91 percent rate caused the rich to hide their income and avoid taxes altogether. THAT´S why the rate was decreased - and collections increased. Maroon.
This guy is a Nut Job with a short memory. First of all, we were coming out of a World War in the 50´s and I´m pretty sure most everyone was paying taxes. Spending domestically was low and we didn´t have the Welfare State we do today. Does this guy EVER utter the words "Reduce Spending"???
Progress. Maybe in his next column Nobel Prize Krugman will come out of the closet and admit what Democrats actually want: a 100% tax rate on all Republicans. Why stop at 91% Paul, when that´s soooo not compassionate enough?
If we want to go back to the 1950´s, we were also battling communists abroad and communist sympathizers at home. let´s bring all that back, too. FBI security checks, loyalty oaths, blacklisting, surveillance of communist sympathizers. I suspect Paul Krugman would be blacklisted out of his job.
1) There were tons more deductions 2) There were many more loopholes 3) When I started paying taxes, just in the early 80s, one example of many, you could deduct 100%, yes that is 100%, of your credit card interest!
When I was a kid and my dad first explained taxes to me, that would be early 60s, he said, "The government takes somewhere between a third and half your salary". This was the common rule of thumb. Self-employed usually socked away a third of their salary to cover their taxes. This was what my mom did, who had her own small accounting business, from 1963 to 1973.
Paul, you ignorant slob. To get to the booming 50s we would have to spend trillions just like the US did in the 40s. Remember we bombed all our competition into the stone ages in the forties? There was no competition so capital and labor was concentrated in the US. So of course our economy boomed. Today, much as the socialist want to believe, if we raise tax rates and allow unlimited union participations, there wouldn´t be a US. Cause all the money and jobs would be in countries that like rich folks that supply jobs.
The Almighty Union killed the Twinkie as surely as it killed Chevrolet, GM, Chrysler, Jeep, etc., etc. (Ford didn´t drink the Kool-Aid, but got blamed for it anyway.) Hate Krugman nearly as much as I hate what the unions have become.
Yes, some of the ´rich´ are greedy and obnoxious. Most highly execs, though, are paid on productivity. If they can bring the company big bucks, then they will be paid big bucks.
I believe the real issue is...why are there so many poor? What life decisions did they make, or not make, to put them in the positions they are in? There is still a lot of opportunity in this country to be financially successful. They are a drag on our economy. Why? They are the ones we should be concentrating on.
Krugman, a Princeton, NJ resident(well, his wealthy wife owns the home there) is a fool. There are many many large homes in Princeton that were put up by the accountants who hid that wealth during the %91 rates era.
The higher tax rates are still being paid. Now they are imposed in the form of EPA, OSHA, and all the other government agencies stacks of rules, regulations and laws. Back in the ´50s, business was easier and less expensive to start and operate. People were smarter too: They didn´t have to be told that coffee could burn them, etc.
All those government agencies that write the laws, rules and regulations have been a boon to lawyers. The government fines companies and then blows the money in other areas. The Gulf oil spill money from BP is going to the government coffers- not to the people hurt by the spill.
Let´s get this out of the way first... Krugman is lying.
I´ve been seeing this admiration for the 91% top marginal rate and smaller disparity of earnings in the 1950s, often combined with the simpleton liberal cackling about how the economy was booming despite that 91% top tax rate that kicked in pretty quickly. So I took a look into it and here´s what they aren´t telling you....
First, executives and other white collar workers weren´t living a life of austerity. Companies and executives evaded the top margial tax rates through expense accounts and company benefits that includes mansions, servants, vacation homes, and yacts. A 1958 Yale Law Journal article titled "Expense Accounts for Executives" by V. Henry Rothschild and Rudolf Sobernheim conservativele estimated expense account spending at $5 billion, evading $1-2 billion in taxes, allowing executives to live well beyond their salary means. What they fail to realize is that those loopholes were closed as rates went down.
Second, the economy of the 1950s boomed because the US was running a massive trade surplus, thanks to much of Europe and Japan having been bombed flat by WW2.
So if they want to replicate the miracle of the 1950s, all we need to do is put all of those loopholes back, raise the top rate back to 91%, and then bomb Europe and Asia flat. Think Obama and the rest of the left will go for that plan?
I can´t quit thinking about the scene in Paternity when Burt Reynolds´ character (newly transformed into a nutrition Nazi) sets a Twinkie on the rail of (I think the Staten Isle Ferry) and tells a pregnant Beverly D´Angelo:
"See this? There are so many preservatives in this thing, I could leave this here & it will still be standing after this Ferry has been reduced to rust. Don´t eat it." (loose paraphrasing)
She rolls her eyes. Hmmmm . . . I WONDER if that´s why he never got anymore work? (pun intended)
The earth barely missed taking a massive solar punch in the teeth two weeks ago, an "electromagnetic pulse" so big that it could have knocked out power, cars and iPhones throughout the United States. Two EMP experts told Secrets that the EMP flashed through earth´s typical orbit around the sun about two weeks before the planet got there. "The world escaped an EMP catastrophe," said Henry Cooper, who lead strategic arms negotiations with the Soviet Union under President Reagan, and who now heads High Frontier, a group pushing for missile defense. "There had been a near-miss about
GDP data Wednesday is expected to show a slow-moving, zombie-like economy, as the Fed meets for a second day. Many economists expect second quarter growth to be paltry, less than one percent, and some think that data could help shape the Fed´s thinking if it´s even weaker than expected. The first quarter grew at a 1.8 percent rate. The Fed meanwhile, is not expected to say much new when its meeting ends. The 2 p.m. statement is not seen altering what Fed Chairman Ben Bernanke has already said about the Fed´s plans to taper bond purchases before the end of the
In a week when he tried to focus attention on the struggles of the middle class, President Obama said in an interview that he was worried that years of widening income inequality and the lingering effects of the financial crisis had frayed the country’s social fabric and undermined Americans’ belief in opportunity. Upward mobility, Mr. Obama said in a 40-minute interview with The New York Times, “was part and parcel of who we were as Americans.” “And that’s what’s been eroding over the last 20, 30 years, well before the financial crisis,” he added.
After five straight months of improvement, mortgage delinquencies rose dramatically in June. The national delinquency rate is 6.7 percent, up nearly 10 percent from May and the highest level since February, according to a report from Lender Processing Services. This data follow another read on the mortgage market showing that nearly half of the loans modified in 2009 under the Obama administration´s housing rescue program defaulted again.
A battle rages in economic policy circles: Should America make its borders more open to high-tech guest workers, or should we batten the hatches? Even those who oppose totally open immigration often support temporary guest worker visas, known as H-1B work visas, for high-tech. But some oppose them, arguing that -- as in other industries -- workers from abroad undercut the wages of those domestic workers who would otherwise do the jobs here in America.
Hey America, want to save $13.8 billion over the next 30 years? Get rid of your dollars. The greenbacks, that is. Let´s use dollar coins instead. That´s the message from a consumer advocacy group and former presidential candidate, Sen. John McCain, who has re-introduced legislation to phase out dollar bills. Eliminating the dollar bill in favor of the coin would save $13.8 billion over 30 years, says the consumer group Council for Citizens Against Government Waste (CCAGW). At a Capitol Hill briefing on Monday, the group said printing dollar bills may be cheaper than minting coins, but they last only
In the nearly two weeks since Egypt’s military seized power, President Obama has promoted a better federal bureaucracy, given a medal to George Lucas of “Star Wars” fame and had former President George Bush to the White House for lunch. What he has not done is publicly address the violent upheaval in Cairo. (Snip) Some compare Mr. Obama’s approach to the “hidden hand” style of President Dwight D. Eisenhower, who often steered events behind the scenes without being public about his role.
Capital expenditure across the world is expected to decline this year and next, according to a new report by rating agency Standard & Poor´s (S&P), which warned that hopes of it driving an economic recovery were unfounded. S&P said that despite a modest recovery in capital expenditure (capex) following the financial crisis, it slowed again in 2012, and is expected to contract by 2 percent in real terms this year. Initial forecasts for 2014 are for it to continue to slip, falling by 5 percent year-on-year. "A modest post-crisis recovery appears to be stalling before it has really begun,"
Fish-oil supplements credited with a range of health benefits could trigger prostate cancer. Experts found that omega-3 fatty acids may raise the risk of the most lethal form of the disease by more than 70 per cent. ... However, scientists found that those with the highest levels of omega-3 in their blood were 71 per cent more likely to develop fast-growing, hard-to-treat prostate tumours. They were also more likely to contract the slower, less deadly form of the disease, with the overall prostate cancer risk raised by 43 per cent.
The level of underemployed workers looks bad on its face but even worse when it´s not the government doing the counting. When the Labor Department released its monthly nonfarm jobs report Friday, it was all sunshine and roses except for one glaring weakness: A big jump in the underemployment rate that includes those who have quit working as well as those who have had to take part-time jobs even though they´d rather work full-time. That rate, which economists call the U-6, jumped from 13.8 percent in May to 14.3 percent in June—a 3.6 percent increase and indicative that the 195,000 new jobs
Egypt´s interim president has backed away from an announcement Saturday that pro-reform leader Mohamed ElBaradei would be appointed as the country´s interim prime minister, news agencies reported. Ahmed el-Musilamani, a spokesman for President Adly Mansour said consultations were continuing, denying that ElBaradei´s appointment was ever certain following the ouster of President Mohammed Morsi, according to the Associated Press.
A former UN atomic energy chief and Nobel laureate who is a leader of Egypt´s liberals was named prime minister of his nation´s interim government on Saturday, replacing the ousted Islamist president, according to state television. Mohamed ElBaradei, who is also a co-founder of the liberal Dostour Party, will form a caretaker cabinet that will oversee Egypt´s affairs following the popularly backed military overthrow of Mohamed Morsi, a Muslim Brotherhood leader now being detained by the armed forces. An official close to Mr. ElBaradei confirmed the appointment, one of a series of moves by the interim president Mansour Adly, the
White House insiders say President Barack Obama is in “a funk” about what he sees as increasing stagnation and failures surrounding his second term and some worry that the President is becoming more distant and distracted. “He’s not the same Obama that came to the Oval Office after the 2008 elections,” a senior White House aided confided to friends in an email recently. “I’m worried.” Chicago Mayor and former White House chief of staff Rahm Emanuel tells friends that the Presidency has changed his longtime friend Obama and many of those changes are “not good.”
In warning about possible al Qaeda attacks against Americans overseas, U.S. officials may have provided too much detail about intercepted chatter and the source of the information, and that may make it more difficult to get such tips next time, former and current intelligence officials say.On Friday, the U.S. State Department issued a worldwide travel alert for Americans, citing an unspecified al Qaeda threat. The bulletin said that the highest threat levels are the Middle East and North Africa, “and possibly occurring in or emanating from the Arab Peninsula.”
Washington - President Barack Obama´s top national security advisers met at the White House on Saturday to discuss the potential threat of terrorist attacks that caused Washington and its allies to issue travel warnings and close embassies throughout the Middle East. The United States issued a worldwide travel alert on Friday (Snip) Obama is spending the weekend at the Camp David presidential retreat after playing golf earlier on Saturday. His birthday is Sunday. The White House said Obama had received regular briefings about the potential threat and U.S. preparedness measures all week.
[Video] Rapper Jay Z appearing on HBO´s "Real Time" with Bill Maher says that the black community wants upward economic mobility rather than a stronger police presence. In a conversation with former Congressman Barney Frank about police tactics such as stop-and-frisk, Jay Z suggests the stagnant economy and wealth inequality could cause widespread social unrest: "The real problem is there´s no middle class, right? So the gap between the have and have-nots is getting wider and wider... It´s gonna be a problem that no amount of police can solve, because once you have that sort of oppression
Common sense tells me that cops don´t need a Taser or a shotgun to subdue a 95-year-old man. When John Wrana was a young man, fit and strong and fighting in World War II with the U.S. Army Air Corps, did he ever think he´d end this way? Just a few weeks shy of his 96th birthday, in need of a walker to move about, cops coming through the door of his retirement home with a Taser and a shotgun.
Not only should President Obama cancel a bilateral summit with "schoolyard bully" Russian President Vladimir Putin, Sen. Chuck Schumer, D-N.Y., said Sunday on "Face the Nation," but considering the country granted asylum to National Security Agency leaker Edward Snowden, U.S. allies should try to move next month´s G-20 gathering from St. Petersburg. "President Putin´s behaving like a schoolyard bully, and in my experience, I´ve learned, unless you stand up to that bully, they ask for more and more and more," Schumer said. "He´s always going out of his way, President Putin is, to seem to poke us in
You don´t have to be gay or even Russian to feel the wrath of the Russian government´s homophobia. You could go to jail if you are "pro-gay," whatever that means. And that´s under just one of a growing number of hate-infused bills becoming law at a time when, as it happens, Russia is preparing to host the world in the next Winter Olympics. The perverse anti-gay legislation is inflaming an atmosphere of persistent intimidation and at times deadly violence against Russian gays and lesbians. The question now is: What should the rest of the world do?
Several skills that every kid once learned in school are going the way of the dodo in a hurry. Diagramming sentences is practically an extinct art, for example. Cursive handwriting and memorized multiplication tables look to be swiftly headed that way. Apparently, the next thing that kids will no longer need to learn is spelling and grammar. Sugata Mitra, a professor of educational technology at Newcastle University in northeast England, announced that traditional language rules are out of fashion, reports the Daily Mail. Kids don’t need to waste time on those things, see. State-of-the-art computers and mobile phones can make
I have a suggestion. How about an exhibit on Tawana Brawley? If the purpose of the new National Museum of African American History and Culture at the Smithsonian is to remember racial controversies, as the proposed Trayvon exhibit seems to confirm, then how about an honest look at the phenomenon of hate crime hoaxes? Particular attention should be paid to the role of the media in both the Trayvon and Tawana materials. Unquestionably, the media stirred up racial animus, and these incidents both contributed to raising racial tensions.
Police shot and killed an armed teen in the South Bronx early today after the suspect opened fire and refused to drop his gun, police said. Two rookie cops heard shots fired near East 151st Street and Courtlandt Avenue around 3 a.m. and ran in the direction of fire, police said. The uniformed officers saw Shaaliver Douse, 14, of the South Bronx, chasing another person through the streets, according to cops. Douse, who was arrested in May on attempted murder charges for shooting a 15-year-old, fired at the man running on East 151st Street this morning, police said.
An odd dark vertical line that was observed in the sky over Florida earlier this week has left meteorologists puzzled. The shadowy apparition was spotted and photographed by Mike Weight at Honeymoon Island State Park near Dunedin, Florida, Wednesday. Weight was walking on the beach at around 12.30pm. The day was bright and sunny, but there were thunderheads forming to the east. ‘I was looking North when I observed what looked like a ray of dark light coming down from a small cloud to the surface of the Gulf about a half-mile away,’ the 73-year-old man wrote in an email
Goose Creek resident Nancy Mace officially announced her campaign to defeat U.S. Sen. Lindsey Graham in the 2014 Republican Party primary. The first woman to graduate from the Citadel, Mace is a well-regarded up-and-comer in Palmetto State politics, counting at least one notable South Carolina Tea Party fave as an ally, state Sen. Tom Davis (R-Beaufort). However, if Mace truly hopes to secure the SCGOP nomination, she will need to answer questions about another comrade, Will Folks of FITSNews. As the former co-owner of FITSNews, Mace presided over the South Carolina political gossip site during its most infamous days;