The New Deal gave us our first taste of using massive federal spending to create jobs, and it didn’t work. It was a ten-year disaster. The higher tax rates on the income of individuals and businesses stifled investment and stopped new industries from forming. Then World War II put millions to work, but that didn’t end the depression. The end came only after World War II, when the Republican Congress, elected on the slogan “Had enough?” drastically reduced the tax rates and government regulations. By the end of 1946, unemployment was only 3.9% and government had annual budget surpluses. America was responding to freedom. That’s a lesson we should all learn.
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