Thread by @BOB_1and_only

As we see debates about increasing the top marginal tax rate, and even talk of a max income, I think it’s important to talk about what happened during the long reign of one of the greatest presidents of all time: FDR.

#IncomeInequality
#ResistanceEducation

FDR’s election happened during the height of the Great Depression, during which labor movements in the US were at an all time high.

This organization amongst labor, coupled with strong socialist and communist parties within the US, led to increased pressure.

This pressure was applied mainly to corporations and politicians of the time, but was also used in small struggles for better working conditions.

It was in these “trial-battles” that groups like the AFL & CIO (modern @AFLCIO) gained strength and skill.

With increased unionization, and increases in unemployment during the depression, these groups found a common fight in the plight of the average worker.
They also found widespread support with a new national crises: the Great Depression.

With all these incidents coalescing, there was tremendous pressure (political & social) for great changes in the system at the time.

To avoid a full Marxist revolution, FDR opted for an attempt to assuage the workers, unions, and socialists.

The proposed solution(s) consisted of massive social welfare systems designed to directly help those in need: unemployment insurance, social security, and other social benefits.

But even these temporary victories for the labor movement were not enough to bring the economy back, nor satiate the demands of certain groups.

And so, pressure still grew.

One of the avenues that was heavily weighed was to redistribute accumulated wealth of the capitalist class.

This lead to income tax increases (starting under Hoover, and increasing under FDR), which was widely celebrated by many of these groups.

Eventually, due to pressures domestically and via WWII, FDR considered one of his most radical proposals: an effective income cap.

In today’s spending power it would amount to a cap at $385k, above which a 100% marginal tax would kick in.

To be clear, this was due to both the pressures of war, AND the pressure applied by organized labor and aligned political parties.
It was not just the whim of a benevolent leader; it truly was the will of the people.

However, instead of this policy going into effect, a 88% top marginal tax rate, coupled with a 5% “Victory Tax” (that’s 93%!) was enacted.

These are the gains that organized labor, and socialist parties, ALMOST achieved.

It’s not too late to learn from them

PS,
At this time, even the mere threat/thought of a communist revolution had significant power due to recent events in Russia.
So, while the US socialist parties didn’t have as much support as others, they carried a weight that others didn’t to politicians.