The Congressional Research Service did a statistical analysis of whether low tax rates on highest 0.1% of population helped the economy. September 2012. at http://online.wsj.com/public/resources/documents/r42729_0917.pdf
They correlated tax rates on upper 0.1% with economic growth (GDP), productivity, savings rates, and investment rates. (why didn't they also look at unemployment?). The tax rates on upper 0.1% are dominated by the capital gains tax rate.
They concluded there was no statistically significant effect. But they did affect the percent of total income to super-rich.
"The top tax rates appear to have little or no relation to the size of the economic pie... Tax policy could have a relation to how the economic pie is sliced—lower top tax rates may be associated with greater income disparities."
The congress ordered this study, but are ignoring the results, continuing to call for more tax cuts for "the job creators" (euphamism for high income people).
I noticed that half way through Clinton's term he reduced capital gains rate from 28% to 20%, so Democrats aren't much better. And Obama reduced capital gains rate to 0% for middle income people - totally just pandering to his constituency.
Same thing happened leading up to 1930. "The Gilded Age" and so forth. Then, in the 1930s things normalized, but it took more than one term of a president. FDR's first term he made some fixes, then undid some of them, then the economy got even worse...
Eventually, the biggest negative deficit and stimulous program ever - WWII - got us out of that stagnant period.
I have hope we'll get out of our problems today which I think are not nearly as bad because we have social security, unemployment, they didn't get rid of all bank regulations,...
Yeah, good idea, I'll go hiking. My blogging about it doesn't fix anything : )