The poverty rate was lower in 1974 than it is today, a result of LBJ’s War on Poverty, and at a time when the top tax bracket was 70%.

The income equality gap was far lower, and the purchasing power of the minimum wage was at an all-time high in 1968.

From wikipedia:

The purchasing power of the federal minimum wage peaked in 1968 at $1.60 ($12.00 in 2019 dollars).[8][9][10] If the minimum wage in 1968 had kept up with labor’s productivity growth, it would have reached $19.33 in 2017.[11]

The problem with income inequality has a high correlation with poor economic growth.

Think about the actions of each economic group when they get some form of stimulus from the government (either a tax cut, or a refund):

Poor people spend all their money on food, clothing and shelter.

Rich people may buy an extra luxury item, but most of their money goes into their investments.

Corporations take their money and do stock buy backs to increase share value and maximize the bonuses for CEOs. They don’t use the money to increase wages or increase staff.

Capitalism is based on each individual or company maximizing their profitability. There is nothing inherently evil about that motive, but the sum total of these individual actions leads to economic consequences that do not help the country as a whole.

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