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How come Iraq & Afghanistan spending haven't hurt the economy like Vietnam did?

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Ignacio Upton Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:24 PM
Original message
How come Iraq & Afghanistan spending haven't hurt the economy like Vietnam did?
One of the main reasons why the economy was so fucked up from about 1969-1982 was because of stagflation, which happened because Johnson tried to have his cake and eat it too with regard to spending a shitload of money on both the Great Society and the Vietnam War. Nixon continued Johnson's spending and used price controls as a bandaid to act as a political ploy for the 1972 election. I'm wondering though, why Bush's spending on Iraq (and to a lesser extent Afghanistan and other commitments) hasn't brought about the same economic problems that spending on Vietnam did? I know that military spending isn't even included in the deficit, so the deficit is much bigger than the White House wants us to believe.
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liberal N proud Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:27 PM
Response to Original message
1. Because no is talking about the deficit
The stock market is working for the wealthy and the don't report anything else
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Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:28 PM
Response to Reply #1
4. Wall Street is ignoring the deficit
They're too busy congratulating themselves for record profits after years of cutting labor costs by outsourcing jobs.
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izzie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:27 PM
Response to Original message
2. Easy we are using credit cards. Our grand children will pay.
Go for it Bush. It is the smart money know how of the GOP money men who figured this out.
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Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:32 PM
Response to Reply #2
10. Here's a real horror story
Edited on Mon Oct-23-06 04:32 PM by Tempest
Traditionally 40%-45% of consumer purchases are made on credit.

In the last four years, 88% of consumer purchases were made on credit.

When the credit crunch comes, it won't be pretty for anyone.
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Sanity Claws Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:28 PM
Response to Original message
3. Give it time
My recollection was that stagflation did not hit until late 1970s, about three years after withdrawal from Nam.
Sometimes it takes a while for the chickens to come home to roost.
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Ignacio Upton Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 07:30 PM
Response to Reply #3
21. I would hate to be President in 2008-2016
If we win we will have a bigger economic crisis than in the early '90s.
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Ignacio Upton Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 07:33 PM
Response to Reply #3
22. Inflation was a problem during the Nixon Administration
When we were still in Vietnam. Nixon used wage and price controls, even though he opposed them economically, for political gain for the 1972 Election. When we took them off, inflation skyrocketed yet again.
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butterfly77 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:29 PM
Response to Original message
5. It is , but everyone doesn't know it yet...
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Sapere aude Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:29 PM
Response to Original message
6. Because so far we haven't printed a shit load of money and flooded the
country with it.
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:33 PM
Response to Reply #6
11. Welllllllllllll........... we don't really know that.
Because, a little while ago, our government stopped posting the amount of money in circulation, leading some extremely suspicious people to suspect they didn't want us to know they were printing money like confetti.
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Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:37 PM
Response to Reply #11
14. Bush is printing money faster than we can cut down the trees for the paper
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Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:36 PM
Response to Reply #6
13. Oh, yes we have
www.billcara.com/archives/2005/12/us_money_supply.html

The thing is, foreign governments are willing to buy everything we print.

For now.


How does the US Dollar Defy the Law of Gravity?
http://news.goldseek.com/GoldSeek/1161628344.php
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Not Me Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 05:00 PM
Response to Reply #6
19. And that is why gasoline went up 3x in the past 5 years.
The oil producing countries know the real value of our dollar.
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:30 PM
Response to Original message
7. Uh, you don't think we're in stagflation now?
Ho, ho, ho.

Meantime, the more panicky the Republicans, the more jubilant and optimistic Wall Street is.
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Jacobin Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:30 PM
Response to Original message
8. Its driving the deficit through the roof
Which means the fed will have to increase interest rates to keep foreign investors in the T-Bill market to pay for the deficits. Its already happened to some extent, but it will inevitably get worse and as interest rates rise, the economy will slow down.

We are living on borrowed time
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focusfan Donating Member (884 posts) Send PM | Profile | Ignore Mon Oct-23-06 04:30 PM
Response to Original message
9. Ifthe U.S. was a business it would be bankrupt
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Tierra_y_Libertad Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:35 PM
Response to Original message
12. Our infrastructure is crumbling to pay for the war.
Education, health care, the environment, etc, are being cut or ignored so the politicians and generals can wave their jockstraps and show everyone how "tough on terrorism" they are.
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Double T Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:38 PM
Response to Original message
15. All you say is true AND..........
China, along with other countries, are financing OUR HUMONGOUS debt. The 'debt', 'deficit' and 'inflation' are MUCH LARGER than bushco's phony economy indicates.
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enid602 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:39 PM
Response to Original message
16. Viet Nam
Careful, here. The bad economic news from Viet Nam mostly came after the war ended, because it was THEN that we had to start paying off the debts. Remember low growth, high unemployment and stagflation of the '70's. I fear it will be the same with Iraq.
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applegrove Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:50 PM
Response to Original message
17. Because the wages of Americans are not going up right now. And jobs
are lost. Though in the future it may be the case that War spending jumps inflation into hypergrowth.

What matters for inflation is the aggregate..that means if everyone's wages and prices are rising..then you can get stagflation. In this case spending on war and tax cuts only affect a few people. The vast majority of people are either not seeing good wage growth, seeing negative growth, are under-employed..going bankrupt because of health care costs or something not so good.

In the 1970s the wages for women and men were rising. So when the Opec Oil crisis and spending on Vietnam happened...it was growth of costs in every sector of the economy. And inflation took off.
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BootinUp Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 04:53 PM
Response to Original message
18. Give it a little more time.
its coming, bend over.
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whistle Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-23-06 05:34 PM
Response to Original message
20. It is money which is being looted from the Social Security Trust funds
...and Medicare/Medicaid trusts. Bush is spending the future and allowing the rich to keep more of what they make by giving them tax breaks
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