Why were jobs so plentiful in the U.S. during the '50s-'60s when taxes were so much higher at the time?
- caspian88Lv 76 years agoFavorite Answer
The rest of the world was still recovering from WWII, the lower-cost overseas manufacturing hadn't yet become viable, unionization remained strong, the American industrial sector remained cutting-edge, and investment was more stable due to tax incentives encouraging long-term investment by both investors and managers. Basically, it was a perfect storm that could not be maintained forever and which can't truly be replicated anymore, regardless of how hard you try - a new paradigm to improve living standards must be used (I, personally, favor something along the lines of the Danish labor and business model).
- Louie OLv 76 years ago
The unemployment rate was lower then for several reasons:
- American companies hadn't moved outside of the U.S. yet
- thanks to the programs begun under FDR's 'New Deal' in the 1930's, and the end of WW2, the U.S. infrastructure was booming in the 50's and 60's. Many Americans were moving to the suburbs new housing construction and public works projects, and therefore jobs, were plentiful across the U.S.
- we were still in the Cold War, more people joined the armed forces.
- blacks and women were still being discriminated against in the work force, there were more jobs available for white American men.
- MajorArmedManLv 76 years ago
We were so rich and powerful because of the government spending that contributed to the growth of America's economy during World War II. At the same time, Europe and Asia were still lingering and had a hard time getting out of the rubble after they suffered so much devastation to their countries while most of our infrastructure went unharmed through out and came out unscathed. As a result, we spend billions of money not just on the military but to upgrade our welfare living and improve our roads that would give us easy access just in case of foreign military attack. Government spending, followed by encourage from investors and managers, helped propelled the U.S. into the richest nation in the world into the level that stayed until we made a decision to outsource jobs to other nations.
In the 50's and 60's the United states was not the "go to " place for the world's émigrés--Today it is the first palce anyone wants to go and that means populations from which employers can pick and choose and pay what ever wages. It's due to overpopulation not taxes.
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- angelharp7Lv 66 years ago
Some really good answers. Also remember that you still had a lot of jobs, such as service-station attendant and telephone operator that had to be done by actual human beings. In fact, probably in almost every field more humans were needed to do jobs that computers, robots, and other mechanical devices do today. And, as one other kind responder noted, fewer middle-class and wealthier married women were in the labor force.
- JanetLv 46 years ago
Because economic policies favoured growth and there was much less disparity in wealth and income between the rich and the poor . It is a mistake to think that low taxes bring prosperity - it ain't necessarily so as those earlier decades demonstrate .
Manufacturing resources dedicated to war production were retooled to meet consumer demand prompted by innovation in the advertising industry. ... Middle class tax rates were never onerous (as low as 28%); it was the top tax rates which were upwards of 94% on marginal income. - Normally, the high top tax rates would inhibit investment and growth, but the excess capacity freed from war production helped to buffer this effect.
- njyogibearLv 76 years ago
That was before most manufacturing jobs moved to low-wage places like China and Mexico.
- Needful SinnerLv 76 years ago
On-going industrial revolution.
Aren't automated assembly lines awesome!
- LennyLv 76 years ago
US was the only game in town for the world devastated by the war. Capital and entrepreneurs had nowhere else to go.
It is not the case today.