Debunking A Libertarian Fantasy That Erases History

1. "Americans kept all of their earnings" before 1913?

False. The federal income tax was introduced via the 16th Amendment in 1913, but Americans were not free of taxes before then.

• Tariffs and excise taxes: These were the primary federal revenue sources, disproportionately burdening lower-income Americans (e.g., tariffs raised prices on imported goods like sugar and cloth).

• State/local taxes: Property taxes, poll taxes, and sales taxes funded schools, roads, and infrastructure. For example, public schools in the 1800s were largely financed by local property taxes.

• Regressive taxation: The poor paid a higher share of their income in taxes compared to the wealthy, as the tax system relied on consumption-based levies.

2. "America still had schools, roads, colleges, etc."

Yes, but at what cost?

• Limited access: Public education was unevenly distributed. In 1910, only 14% of Americans graduated high school, and many rural schools were underfunded.

• Privatized infrastructure: Early railroads and subways were built by private corporations (often with government subsidies, land grants, or monopolies), which prioritized profit over public good. For example:

  • Railroad tycoons like Cornelius Vanderbilt amassed fortunes through exploitative labor practices and government handouts.

  • Toll roads and bridges were common, restricting access to those who could pay.

• The military: Pre-1913 military spending was minimal compared to today. The U.S. Army had just 80,000 soldiers in 1900, and veterans’ benefits were scarce.

3. The "quality of life" myth

The meme romanticizes pre-1913 America, ignoring rampant inequality and suffering:

• Child labor: In 1900, 18% of children aged 10–15 worked in factories, mines, or farms.

• No worker protections: No minimum wage, workplace safety laws, or Social Security. The average workweek was 60+ hours.

• Healthcare: No public health infrastructure. Life expectancy in 1900 was 47 years (vs. 79 today), and diseases like tuberculosis killed millions.

• Poverty: Over 40% of Americans lived in poverty in 1900, with no safety nets like food stamps or unemployment insurance.

4. The role of government and taxes in progress

The infrastructure and institutions the meme praises required collective investment:

• Progressive Era reforms: The introduction of income taxes (1913) and New Deal programs (1930s) directly addressed the meme’s implied "golden age" failures. Social Security, public schools, and modern highways were funded by taxes.

• Public goods require public funding: Roads, schools, and the military are non-excludable and non-rivalrous—they can’t be efficiently provided by private markets alone.

5. The meme’s capitalist fallacy

The argument assumes that "keeping all earnings" (i.e., no taxes) leads to prosperity, but this ignores:

• Market failures: Pollution, monopolies, and worker exploitation ran rampant in unregulated pre-1913 capitalism (see: the Gilded Age).

• Externalities: Private companies profited while offloading costs onto society (e.g., industrial pollution, unsafe products).

• Wealth concentration: In 1913, the top 1% owned 45% of U.S. wealth—a level of inequality not seen again until the 21st century.

6. Why taxes (and government) matter

Modern public infrastructure, social safety nets, and regulations emerged precisely to correct pre-1913 failures:

• Education: Federal funding helped expand high school graduation rates to 90% by 1970.

• Transportation: The Interstate Highway System (1956) was a government-funded project.

• Healthcare: Medicare/Medicaid (1965) reduced elderly poverty and increased life expectancy.

Conclusion

The meme’s narrative is a libertarian fantasy that erases history. Pre-1913 America was not a tax-free utopia but a time of extreme inequality, exploitation, and underinvestment in public goods. Taxes and government intervention—far from stifling prosperity—built the middle class and improved quality of life. The meme’s argument is not just misleading; it glorifies an era most Americans would find unrecognizable and unlivable by modern standards.