Monday, September 29, 2008

History repeats itself? 1932 failure and then passage of big legislation is instructive

Jim Oleske has a post on dailykos with a history lesson.

In 1932, Congress tried to pass a new tax since government funds were all drying up. There was a Washington consensus around a sales tax. But the people said no, and the Members of Congress rebelled against their leaders to reject the proposal. A few months later, they passed a progressive income tax which helped build the largest middle class the world has evern know.

Now, with the defeat of an investment bank windfall bailout, what's the progressive opportunity?

A transaction tax to pay for Wall Street abuse, past and future?

Re-regulation to finally end the failed Reagan Revolution of anti-government government?

It's a good post, but more importantly, a good reminder that we must demand more from our government than a stupid massive bailout of stupid investment bankers with our money.

1 comment:

Aloysius said...

This is of course all about greed. Congress had nothing to do with this (oh no) and the Democrats had even less to do with this. (Heaven forbid!).

Except for the fact that they did. Barney Frank enabled Fannie Mae and Freddie Mac in their quest for profits. The government set the pace and a lot of bankers (many major contributors to the Democrats) piled on.

Let it flop!