Post WWII booming economy due to these factors:
1. The country was finally free of Roosevelt arbitrarily changing the rules for businesses
2.Much of western Europes manufacturing base was completely destroyed in the war. It was an easy market for the US to overtake, and so business quickly profited and our manufacturing base expanded.
3. 91% effective tax rate: deductions and the honesty of reporting to the IRS was much different then than today. For example, you could define for yourself what your expenses were. The IRS was not the nazi organization it has become.
As for post WWII reading in economics, I suggest Milton Friedman. Keynes and Galbraith represent creating wealth by spending others money. Friedman represents a combination of a beliefs: a Federal Reserve that grew the monetary base at roughly the same rate as the economy grew. "Free To Choose" is less philosophical but has more examples. It is interesting to note that Friedman was no fan of Rand. He believed in separating ethics from economics. I personally side with Rand and believe it is impossible to separate the two.

Bah! Who cares what The Krug thinks?

The man is a walking, talking joke.

P.S. I don't think "socialist" is the right word to describe Krugman. He's a Keynesian. Different religion, though they are related in some ways.

He fits right in with the Marx crowd

Hats missing from his comments are the moral issues surrounding his views. It will always come down to that. As with most politicians, it seems that most economists have a dedicated pragmatic streak. The concepts of justice simply don't apply in Paul Krugman's world view.

Hey all - I agree, this article is offensively irrational, misdirecting and counter-intuitive considering this previously undiscovered development in human psychology suggesting over-taxation a viable catalyst for innovation and productivity.

However, before I throw 'the book' at this article - I must admit that I my knowledge on post-war US economics is sorely lacking; I daresay that I would be very interested in any enlightening reading that may serve to educate me better, while also serving as principle rebuttal to this article.

Any links would be very appreciated!