We could have gone on with a more progressive tax system and a stronger labor movement.

Dear Professor Krugman, The 68’ Generation’s broad and frontal attack on the postwar generation was destroying the nearest thing to a “workers paradise” ever known on this planet. The 70’s “economy lacked confidence and was leading to the belief that the “American Century” was over. “Just in case” became the dominating theme. Confidence returned with Reagan and the theme changed to “just in time.” Hoarding and speculation was replaced for a time by faith in America’s future and productive investment. Recall that the “strong unions” were from the 1940’s conservative, strongly anti-socialist, anti-left and then pro-Nixon – note the paradigm changing “Hard Hat Riot” on 8 May 1970 in NYC. The regulation that “should have been crippling” was not because it was actually very pro industry and pro growth. Regulation then was cooperative, predictable and problem solving. Regulation had not yet become a revenue raising tool. The “precautionary principle” tilted toward prosperity and equity not poverty and debt. Our natural resource extractive and manufacturing industries were the largest and strongest in the World and therefore wages were good. If the private sector continues to be terrorized by White House supported “Wall Street” “bucket shops” and Fed “crowding out” and jerked around by anti growth Washington regulators the Keynesian prescription for reviving “Animal Spirits” and the suppression of speculation will fail.

Impure Kool-Aid. AKA toxic sludge.

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