Seize This Opportunity to Change the Economy

Dennis’ Rudzinski’s letter, “Congress should heed Mellon’s Lessons,” argued that lower taxes increase revenue. He points to Warren G. Harding slashing income taxes on the wealthy as evidence. However, Rudzinski ignores many parallels between today and the 1920s.

In 1929, the Great Crash occurred. The 1920s, much like the 2000s, were a period of wealth and excess. Both periods were rife with speculation and a mistaken belief that the market would continue to rise. Then, as now, many conservatives believed that the market is akin to the Oracle of Delphi. The market, the argument goes, is both the all-knowing indicator and all-powerful solution to all challenges. That argument calls for the market to be unleashed from the shackles of government regulation.

Such arguments were wrong during the 1920s. They are still wrong today. Since 1980, the U.S. has been trying to do exactly what Rudzinski advocates. That has brought us the savings and loan crisis, the financial crisis and an economy driven by debt and over-consumption. A few have grown wealthy while, adjusted for inflation, median incomes haven’t increased significantly in 30 years. The result? The great crash of 2008 that nearly caused a second Great Depression.

Rudzinski is correct in that we should look to history for a path out of the mess we are in. But that path is not a suicidal race to the bottom. Instead, this is a time for leadership that is willing to defy the Oracle of Wall Street. We can start by cutting “too big to fail” banks down to size, investing in infrastructure, education and energy.

Carpe diem!

Originally printed as a letter to the editor of the Richmond Times-Dispatch. Click here to view.