Economy analysis: What is the worst economic policy in the history of the US?

Question

I submit that Social Security is the single worst policy in the history of the US since it borrowed against future generations.

Also the tax has gone up from 2% to 12.4%...ridiculous. Last, you are making 1.8% on your money. the government hosed all of us again.

Answer 1

Most economic policies that went along with the New Deal were not the great economic cure for the depression that people think they were. World War II ended the Depression. I agree with Social Security. Considering that the Baby Boomers are heading into retirement, we're all screwed. We are simply not going to get what we paid for, that's so...un-American.

Answer 2

!.8% is about the real return on inflation adjusted securities and to earn more  one must bare  both market risk and inflation risks so it is not that bad. Without social security you would be supporting your parents /grandparents  instead of paying a tax. That is how traditional sociaties  took care of the old and imfrim. It is not really  a choice between keeping everything  for yourself  and paying taxes unless you have no family or you hate them.

Answer 3

I submit the Hawley Smoot tariff.  In hopes of stimulating domestic production and  creating jobs, Congress passed it, which caused tariffs on most goods to skyrocket to 60%, effectively closing off the import sector.  It did not end up stimulating domestic production, because other countries retaliated, so the US couldn't export nearly as much.  But what it did do is spread the Great Depression around the world, killing the export sector in Germany, and that bad economy was what allowed Hitler to come into power.

Or, if you count monetary policy as well, then it would definitely be the Fed's tightening of the money supply during the Great Depression.  That was what turned a recession into a depression.

I would argue that Social Security itself is not that bad of a policy, but the way it's been handled (ie spending the surplus on the general budget) is pretty bad, considering that everybody knew that eventually receipts would be less than payouts.

Answer 4

There is a lot of bad economic policies that were made in the US one is Social Security, Medicare, dumping laws, and some could argue what the Federal Trade Commission has done.  It may be possible to improve it the question is how.

It could also be backing up failing companies because this creates a moral hazard.  This is because if companies know that the government will back up if they fail they can then go for the more riskier business.  The people that get hurt are the tax payers.

Things that might come up in news that one might be suspect is speculation and universal health care.

Edit:

Yes i'd have to agree with Danajaan aswell

Answer 5

I'm only responding with some Kudo's:

Danajaan...that's an excellent answer.  Well done!