America's Cargo Cult: The New Industrial Policy

Abstract

"A decade ago a vocal minority agitated for a no-growth, 'steady state' economy, in which wealth was created no faster than necessary to replace the wealth being lost. This goal was nearly reached when Congress imposed high marginal tax rates, inflation induced bracket-creep, increased regulation. Until recently, the most notable growth in the economy, aside from a few high technology areas, was in the underground economy. Discussing one such period, the editor of Fortune wrote, 'the country has just gone through a real life try out of zero growth [the period 1973-1975] which is remembered not as an episode of zero growth but as the worst recession since the 1930s.'"