As Hillary’s poll numbers continue to slip and slide due to uneasiness about her integrity and candor in her State Department email chicanery, the Cato Institute’s Senior Fellow Alan Reynolds looks at Hillary Clinton’s “most memorable economic proposal,” ushered in this summer. Hillary is borrowing a page from Franklin D. Roosevelt, writes Mr. Reynolds in the WSJ, but she would be wise to note how that played out.
Clinton’s capital-gains tax proposal has been tried before—by FDR with disastrous results.
It is ironic, then, that Hillary Clinton’s fix for an economy suffering under 2% growth is resuscitating a tax scheme with a history of ushering in recessions.
A 2011 study from the Federal Reserve Bank of St. Louis concluded that monetary policy tightening can’t explain the 1937-38 recession.” Instead, the “1936 tax rate increases seem more likely culprits in causing the recession.”
Read more here from Mr. Reynolds who explains how, after a 1938 congressional tax revolt, stocks rose immediately and the recession ended the following month.