Aftermath

Aftermath
Автор книги: id книги: 1547689     Оценка: 0.0     Голосов: 0     Отзывы, комментарии: 0 222,4 руб.     (2,43$) Читать книгу Купить и скачать книгу Купить бумажную книгу Электронная книга Жанр: Зарубежная публицистика Правообладатель и/или издательство: Ingram Дата добавления в каталог КнигаЛит: ISBN: 9781939709394 Скачать фрагмент в формате   fb2   fb2.zip Возрастное ограничение: 0+ Оглавление Отрывок из книги

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Government policies created for one set of purposes almost always generate additional results that were not part of the original plan. Very often these unintended consequences are seriously adverse, and in some cases are so severe as to render the policy a failure. In Aftermath , noted economist Thomas Hall examines four major instances of significant unintended consequences, all of them negative, resulting from major public policies: the federal income tax, cigarette taxes, minimum wage laws, and alcohol prohibition. Each widespread, well known policy was instituted as a positive measure, but almost immediately gave rise to enormously damaging consequences and harmful side effects. What were these terrible consequences? Hall demonstrates how these policies played a significant role in creating America’s vast welfare state, criminal activities, a bloated government hungry for more revenue, smuggling, a scarcity of jobs for teenagers and the working poor, corrupt public officials, overcrowded prisons, and much more. Not exactly what the originators had foreseen. Hall’s exploration of these four iconic policies offers powerful optics for examining current and proposed policies, and he provides an overview of the new and emerging consequences of the Affordable Care Act, the Dodd-Frank Act, and the war on drugs. With the pace of government policymaking continuing unabated, Hall’s insights on how to examine and minimize the potential outcomes of bureaucratic activity before they can potentially harm the pubic—in ways not intended or anticipated—are more necessary and vital than ever before.

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Thomas E. Hall. Aftermath

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To the memory of my brother Jim

PREFACE

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The Great Depression (1929–1941) ranks among the most significant events ever to occur in the United States. The severity of the initial economic recession (1929–1933) is important to the history of the income tax because it caused plummeting incomes, which resulted in a huge decline in tax revenue. Consequently, the federal government experienced sizable budget deficits. The prevailing view at the time was that budget deficits should be avoided, and one way to balance the budget was to raise revenue. Mellon’s idea that lower tax rates could yield more revenue was thrown out the window. The government instead opted for higher tax rates.

President Herbert Hoover started the tax increase ball rolling in 1932. Figure 2.1 shows the top and bottom federal income tax rates from 1913 to 2011. The budget deficit was a major issue in the 1932 presidential election between incumbent Herbert Hoover and challenger Franklin Roosevelt, and both men pledged to balance the budget. In 1932, before the election, Hoover supported higher tax rates as a way to raise revenue, and Congress passed the tax increase in June. Figure 2.1 shows that tax rates rose substantially for high-income taxpayers as the top rate went from 24 percent to 63 percent. The corporate profit tax rate was increased as well. These higher tax rates, however, did not eliminate the budget deficit because the economy continued to plunge in 1932, in part because the higher tax rates reduced both spending and the incentive to earn income.

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