Essay on Government Policies During The Great Depression

1231 Words Nov 11th, 2015 null Page
GOVERNMENT POLICIES As income inequality worsens over the decades, it may appear that the government should involve itself in the matter; the federal government has historically interceded economically, most notably during the Great Depression. However, it can also be said that the government is in part sustaining the inequality crisis. Volscho and Kelly understand this idea through a more individualized level by analyzing the history of certain tax policies. Specific taxes like the capital gains tax and marginal income tax have receded since the mid-20th century, allowing wealthier citizens to retain more wealth for themselves and less revenue for the government to assist the majority of Americans. An article from the University of Maine 's Bureau of Labor Education consider the issue on a larger scale by studying the effects of federal and state laws pertaining to unions. Specific statutes like the Taft-Hartley Act and right-to-work laws impede the union 's ability to protect its workers ' from its employers, which includes reasonable wages for its constituents. Tali Kristal suggests the notion that capitalists accumulate more income through more financial means. Financially attained profits are based more on the mood of financial markets as opposed to value procured through manufacturing with manual labor. Kristal asserts that it is justifiable to state that as the “financial to production profits ratio” increases, there is a decline in the labor’s share of the total…

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