The Twinkie Manifesto by Paul Krugman – Amazingly Inaccurate

Posted by on November 19, 2012 11:04 pm
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Categories: Economy

picture of Twinkie the KidLEE’S SUMMIT, NOVEMBER 19, 2012 – In the opinion page of The New York Times Paul Krugman discusses the 1950’s 91% income tax and claims it was a good period in America.  I’m not sure if Mr. Krugman is being sarcastic, cynical, misinformed, or just plain lying.  He simply neglects to inform the reader that the rest of the industrial world had been bombed out of existence in the period between 1939 and 1945.

England’s industrial sector was bombed regularly, had been transformed for military purposes, and struggled in the late 40’s and early 50’s to regain its footing; as England rebuilt.

Germany’s industrial sector, starting with simple things like ball bearings for any rotating shaft or equipment had been bombed mercilessly during the war to prevent war machinery from being built or repaired.  The industrial sector was a target of the allies.  In the late 40’s and 50’s Germany struggled to get on its feet.

France was subdued by Germany and its entire industrial sector confiscated for war machines and the resistance targeted them to impede Germany’s access to equipment.

Italy, Spain, Belgium were similarly paralyzed.

The entire European continent used America as its supplier while it rebuilt.

Japan, China, Indonesia and the rest of Asia recovered slowly from the Japanese Imperial desires and was a non-factor till the late 1960’s

Krugman is supposedly an intelligent individual so perhaps his column – as the title suggests – was a bit sarcastic; but reading his column it seems that he believes that an impoverished top tier is good for them, good for industry, and good for the country.

Read it for yourself (here) and ask yourself a few questions:

  1. If the government took 91% of your earnings – what would your incentive be to work hard to achieve financial success?
  2. Could corporations invest in new product development if 91% of its earnings were confiscated by taxes, in a world where China, Japan, Korea, Europe are all trying to gain market share at our expense?
  3. Would you have a computer today if IBM, HP, DELL and other computer manufacturers had to surrender 91% of its profits to the government?
  4. Would drug companies invest so heavily in the development of disease curing drugs if they had to surrender 91% of its profits to governmental redistribution?
  5. Would we have cell phones if AT&T, Sprint, T-Mobile, and the rest of the American telecommunication’s companies had to operate on 9% of their profit (not a 9% profit, but only 9% of whatever profit they earned)?
  6. How many loopholes existed in the 1950’s that do not exist today?

In America we have to know our history, we have to know where we’ve come from and why some things worked and will no longer work.  Each of us has a responsibility to understand our history so we don’t fall prey to people like Mr. Krugman.  The New York Times continues to disappoint those of us who love this country enough to spend time learning history.

Want to know more about the post-war industrial revolution; read Tom Peter’s “In Search of Excellence” and see where he points out that between 1945 and 1970’s Industrial success truly should be scored as 25 wins, 0 losses with an asterisk which points out that NO ONE ELSE PLAYED.  Perhaps Krugman should have read Peters.

Respectfully Submitted
The Lee’s Summit Conservative