Sure economic growth was a part of it. But even inflation and economic growth are only possible (partial) solutions if you're not constantly running massive deficits every year. Which we were not after the war. The rates weren't lowered until 20 years after the war ended. There are various sources, but most place the net effective tax rate between 40% and 50% for those at the top. Hardly the 90% marginal rate that existed. But that still proves my point, as my suggestion was to return to a top tax rate of ~40% for top incomes.
Getting your annual budgets under control and then increasing taxes on the wealthy over time (say 30 years like after WW2) would see our debt to GDP ratio shrink to a reasonable level as the economy continues to grow. You just have to make sure that your debt rises slower than economic growth. $39 Trillion in debt doesn't mean nearly as much if the economy as a whole is $50 Trillion. Which is entirely doable today if they wanted to. Remind me again, didn't Trump say he could pay off our entire national debt in 8 years when he was running the first time? Whatever happened to that? I suppose he'll do that right after they repeal and replace the ACA. And end the war in the Ukraine. And pass that Infrastructure bill....etc.
I’m not understanding your response that they didn’t lower rates until 20years are the war?
The Federal reserve pretty much capped rates starting in 1942 and kept them low and didn’t start raising them until the 1950’s .
Short term t bills averaged 0.375
And long treasury bonds averaged 2.5%
I’m not arguing over the your claim of effective rates of 40-50 percent.. that did not pay off the debt nor does it change or make my statement false that people did not pay the high up to 92 % top marginal rate applied after the war.
The us will never get there spending under control because contrary to belief they didn’t really get it under control after wwii. We did cut war spending in half for a few years but by the 50’s we went right back to it with Korea and then the cold war kept it high and climbing, LBJ and his great society bullshit and medicad,Medicare, and vietnam all by 1970 which is when our gdp technically hit the roughly 35% mark.
we are not in the same environment as wwii so it’s high unlikely that we could repeat those tactics.
You had the developed world collapse while we stayed intact.
That allowed us to economically explode on the scene.
We had a production and population boom.
And we had bretton wood which put us in control and the world hungry for our debt(opposite seems to be occurring today) which helped finance our deficit and allow us to expand.
I’m assuming that you bringing trump up that its somehow going to get me bothered… you would be incorrect.
Trump increasing the debt doesn’t change my feeling in any way because I would have to be blind and naive to think that any president has the power to lower spending and the desire to eliminate the national debt. There are no modern case studies to show that logic.