Capitalism, Government and Taxes

I read an interesting article yesterday about Finland.  The bottom line was that capitalism has thrived in Finland while not only accepting the role of government, but investing in society through the government.  Universal health care, subsidized day care, paid parental leave, excellent schools and tuition free colleges.  The Finnish people have accepted higher taxes in order to provide for all of these things that ultimately strengthen their society and provide a healthier, well educated workforce. When we look back at the history of the United States, what do we find when it comes to the impact of higher taxes?  The average tax rate on the top 0.1% was over 50% in the 1950's.  The highest marginal tax rate was 91%! The corporate tax rate was 50%.  Wait!  This was the 1950's, one of the greatest economic periods in the history of the United States.  Father Knows Best, Happy Days, the advent of rock & roll.  The 1950's is the time period most often looked back upon with nostalgia.   It was a time of economic growth and expansion.  What's up with this?

Numbers don't lie.  Data tells the truth.  The myth that higher taxes are bad seems to be just that, a myth.  Granted, if the money that government takes in is ineffectively utilized, the people have a right to complain.  I've got no problem with reining in waste.  On the other hand, we also need to look at the impact of government effectively investing in people and our society.  Isn't that what the New Deal was?  Isn't that what the government's investment in the space program was?  Isn't that why government should invest in infrastructure?

Governmental regulations should be for the protection and benefit of the people.  Isn't that what a government by the people, for the people, should be all about?  Can regulations go too far? Sure it can, but nothing is perfect.  Would we want to have nuclear power plants completely unregulated?  Of course not.  Theodore Roosevelt is known for regulations that ultimately reduced the existence of sweat shops.

It strikes me that a lot of complaints about government and regulations are disingenuous.  Just as complaints about the Federal Deficit and high taxes have been.  At the same time, those who put down capitalism may not actually know what they're talking about.  Capitalism itself is not the problem.  Just look at Finland.