High taxes and growth
As Krugman puts it:
"Here’s a rough-cut version. The blue line, left scale, shows median family income in 2008 dollars; the red line, right scale, shows the top marginal tax rate, a rough indicator of the overall stance of policy. Basically, US postwar economic history falls into two parts: an era of high taxes on the rich and extensive regulation, during which living standards experienced extraordinary growth; and an era of low taxes on the rich and deregulation, during which living standards for most Americans rose fitfully at best."All you can deduce from this is that high taxes, extensive regulation and capital controls don't have to destroy growth. Which is a pretty useful thing to know.
We've got something else on this subject that is pretty interesting, coming up soon enough.