Robert Higgs has been arguing that the reason the recession of 1929 turned into the Great Depression was regime uncertainty. While FDR was attacking business, he was increasing taxes, and moving the economy toward a socialist system. Any of that sound familiar? A week ago Barak Obama referred to private bankers as "fat cats".
This along with suggested taxes on transactions, on estates, on income, all add to uncertainty. Why invest if you do not know whether you will be allowed to retain your profits?
No comments:
Post a Comment