WWII Debt Recovery: How We Paid Down 120% of GDP in Under a Decade
How did we do it? We recovered from a national debt of 120% of GDP in less than ten years.
We did it quickly with smart tax and business legislation. With the massive amounts of corrupting money in politics today, it will require public pressure to implement these policies again.
Inefficient Investment
In 1950, the preferred investment targets were companies that had the highest stock dividends compared to the stock price. Today, the preferred investment targets are companies with the highest profit per employee.
Modern investment favors companies that extract the most profit per employee, rather than companies that pay out the highest dividends relative to share price.
Investment in government bonds that finance our obscene national debt is a very attractive investment today. We the People pay interest on this debt to the tune of $6,600 for every man, woman, and child in the US.
This can be seen in the contrast between leading companies then and now.
Debt Then and Now: See the full comparison at Boulevard Wealth Management — Does the United States Have a Debt Problem?
🎯 Key Takeaway
We should demand from our legislatures:
- Middle class tax reduction — middle class spending drives our economy.
- A truly progressive tax system with high top rates.
- Business regulation that encourages productive investment.
- Effective regulation of labor unions to prevent corruption.
- Campaign finance reform.