Who Remembers Guns and Butter?
By PAUL CRAIG ROBERTS
President Lyndon B. Johnson’s policy of Great Society spending and Vietnam War is credited with the rising American inflation that persisted until checked by President Reagan’s supply-side policy.
In Johnson’s time the American economy and the US dollar were strong, and there was no current account deficit. Yet, LBJ’s policy of guns and butter did long-term harm.
The Bush/Obama 21st century policy of guns and butter makes LBJ look like a piker. The 2009 and 2010 federal budget deficits will be monstrous even without guns. But Obama is exiting (apparently) the Iraq War in order to start two, possibly three, more wars.
Obama has announced a doubling of US troops in Afghanistan. Widening that war will require the US to occupy, or attempt to occupy, parts of Pakistan. The disrespect for Pakistan’s sovereignty will further radicalize that large, nuclear-armed country and bring Pakistan, or at least parts of it, into armed conflict with the US.
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punditman says...Is there something about the US presidency that automatically divorces the holder of the office from reality? The US economy is going off a cliff. So -- time to crank up the belligerent rhetoric and escalate military actions. Is there something in the White House water supply?
