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Reply #8: It's called guns & butter [View All]

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Fredda Weinberg Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-10-06 02:08 PM
Response to Reply #5
8. It's called guns & butter
I took economics in the 80's to figure out why Volker sank us into a deliberate recession - turns out you can create the illusion of a healthy economy by disposing of $$$ into weapons, that are quickly consumed and must be replaced. Great for GDP but it starves out the consumer economy. That's where the bread comes in ... or more accurately, doesn't.

LBJ tried to have expensive social programs at the same time we were ramping up for Vietnam. What we have no is equivalent to Vietnam at its height and tax cuts taking the place of the Great Society.

In short, the worst of both worlds.

Economists know what's going on ... that's why you hear the rosy scenario from political hacks and financial interests. In high school, we were taught that the sum of the economy was the stock market - but if you listened carefully you discerned that it was just a zero-sum game where those with inside information always came out ahead.

The long term prospects are bleak. Sorry.
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