Harding believed in American Exceptionalism just like our Foundering Fathers, and his economic policies manifested this belief.[1] When the federal income tax was enacted on February 3, 1913 top wage .11/01/2021 19:17:47PM EST.
The History Of Income Inequality And Popping Economic Bubbles
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Source: AP Photo/Elise Amendola
In a significant study by economists Thomas Piketty and Emmanuel Saez, they explain the economic impact historically on capital and upper income Americans:
We find that top capital incomes were severely hit by major shocks in the first part of the century. The post-World War I depression and the Great Depression destroyed many businesses and thus significantly reduced top capital incomes. The wars generated large fiscal shocks, especially in the corporate sector that mechanically reduced distributions to stockholders. We argue that top capital incomes were never able to fully recover from these shocks, probably because of the dynamic effects of progressive taxation on capital accumulation and wealth inequality. We also show that top wage shares were flat from the 1920s until 1940 and dropped precipitously during the war. Top wage shares have started to recov