This week I have a question from Ryan who asks about economic development in America. Ryan says,
I was having a discussion with an acquaintance the other day over the causes of the post WW2 economy, more specifically why the middle class grew so large compared to the past and today. My claim was that the war devastated other countries’ industries, forcing other countries to buy from the US. This combined with the return of many men from the military to the workforce was the primary cause.
He claims that while those produced a large GDP, it did not explain why the middle class grew. Instead he advocates that the primary cause was the FDR policies of wealth redistribution, high tax rates, and strong labor unions. As such, he advocates for a return to those policies today.
What would be your perspective on this and where might one go to further research it?
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