In the past few weeks our new President has tried to impose a tariff-based economy on what has been since WWII a global free trade system. He remarked that America’s Golden Era was that period between 1870 and 1913 before the 116th Amendment. The 16th Amendment gave Congress the power to tax incomes. It meant that tariffs were no longer the primary source of revenue for the government.
So, let’s take a look at this Golden Era. What did it mean for the average American? Let’s start with Seniors. There was no Social Security. There was no guaranteed health care for the elderly. These two programs alone transformed the well-being of our senior population. Medicare was adopted in 1967 and by 1975 the percentage of elderly citizens below the poverty line dropped by half.
Life Expectancy
In 1900 life expectancy was between 47 and 48 years old. Today life expectancy is 76 years old. This reflects the advancement in antibiotics, vaccines and the discovery of viruses as a disease agent.
Infant mortality in 1900 was out of every 1,000 births 165 infants did not make it to their first birthday. That is one out of six. In 2020 that number had dropped to 5.7 out of every 1,000 births. That means a death rate before their first birthday of one out of every 175 infants.
In 1900 the maternal mortality rate was 850 deaths per 100,000 births. Today it is less than 20.
There was no Medicaid, there was no Obamacare there was no private health insurance. Private Companies began health care coverage for employees as a benefit during WWII.
Today there are 79 million citizens enrolled in Medicaid. There are 67.3 million Americans on Medicare. There are 21 million enrolled in Obamacare. None of these programs existed in 1900.
Financial
In 1900 there were no pensions, there were no 401K’s. There was no minimum wage. There were no Unions. There was no 30-year mortgage an often-overlooked artifact of the New Deal. It allowed the middle class to leverage their buying power and gave banks some protection in case of default. In 1900 less than 45% of household’s owned their homes. In 2022 65% of households owned their homes.
Life Style
It was not until 1923 that America gave women the right to vote. In the South Jim Crow laws were well established and strictly enforced. Homosexuality was criminally prohibited in most states.
So What Was So Golden?
The single Golden aspect of this period at the beginning of the 20th century is the absence of Federal Income Taxes. Wealthy individuals paid little towards the benefits that supported the general population. Our president has long boasted of his ability to avoid taxes. “It makes me smart.” So, I am sure he looks back in time wistfully at an era when his capacity for wealth was not encumbered by the needs of his fellow citizens.
“Take America Back!”
Given what that would mean to the average middle-class citizen, it does not sound like a very sensible idea.