Continuing on FIx the economy . . .

by chumchingee

A lot of people in government have been sold on the idea of fixing the economy by going to War with someone. This comes from a document put out by the Rand Corporation for the government and was published in 1968-9. IN this 150 plus page document it goes into the causes and ramifications of war both socially and economically.

This document also predicts things. For instance, no President can stay in office more than one term without going to war with someone. The President that tries will not be re-elected. There will also be a lot of Congressmen that will be thrown out of office if we are not at war with someone. The idea is that National Pride and National interests in war will keep our elected officials in office.

It predicts that War acts as a national flywheel to produce changes in technology and changes in leadership that would not occur in peace times.

About half of what this document says is true. Bush Sr. got us out of the Iraq war and was not re-elected. It is true that War can drive an economy. It is true that technological innovations are more likely to occur during a war.

The problem as I see it is expense. What the document doesn’t spell out is even in a war that you win, we pay for it later with huge amounts of things like inflation. Our currency is devalued every time we go to war. Our entire population is devalued. Wages go up. But wages do not keep up with the degraded resources caused by war. If you look back 50 years, you have economic circumstances before Vietnam and after Vietnam.

Part of the problem is what I call the Youth rebellion. There is an adjustment every time we have a surge in population between the ages of 17 and 25. This group is most likely to make changes. They are suppressed from doing so by the established people between 30-50 years of age. These later groups are raising families. They are established in their social and economic classes or are they? Today this entire group is in shambles. The promises made have been broken by economic depression that has settled in. The “war economy” has broken the national economy and people are out of work.

They are out of work because we have been exporting jobs to third world countries and it shows.

Our local industry is ill equipped to compete with third world countries like China and India. These places have massive populations and it is going to get worse. Slave labor in factories to produce goods to sell to the world was a genius move in the 70s to offset the retail market destruction of Vietnam. That destruction was caused by huge amounts of debt in pre-1970 dollars. Those dollars are worth 10 times what they are worth today.

So actual commodities became massively cheaper with the import of goods. What didn’t happen was we did not learn to pay our debts of war. So it has progressively gotten worse long term over many years.

The original idea was to use this as a stop gap to keep us from going broke after Vietnam. The side effects have cost us our economy and our way of life.

Meantime, we have actually gone to war twice. Both times have had dramatic effects on our economy. Unemployment is a lot higher than official figures that are basically lies.

It is time to bring the troops home. But what are you going to do with them? If unemployment is high with all these boys in foreign lands, what do you do with them when they come home?

I suggest we re-adjust the economy with taxes on the wealthy. But that is another story…