Posted on 08/22/2010 11:25:17 AM PDT by Rashputin
Aren't these also the same folks who tell us how well JFK and LBJ ran the economy back in the roaring 60s? During the eight years of 1961-69, 46% of all federal spending was on national defense. During President Bush's eight years, defense spending did not even average 20% of federal outlays. Under JFK/LBJ, defense spending was 8-9% of GDP. Under Bush it was about 4%.
How did the economy do so well in the 1960s, and so badly in the 2000s, when less than half as much of our resources were devoted to defense in that more recent term?
The questions are rhetorical. Defense spending, the Iraq War in particular, was not the cause of our economic problems. I don't care if you hear it from James Carville, Ron Paul, or a Nobel Prize-winning economist. It is a lie.
(Excerpt) Read more at americanthinker.com ...
We had a huge manufacturing base then. Try convincing the Free Trade crowd that shipping it overseas was a bad idea.
Yeah times were a lot cheaper then, back when America was free.
I know a lot of people, including FReepers, criticize defense spending as wasteful. By my own thinking, entitlement spending is 5X as wasteful. At least with defense spending, you foster a technically skilled workforce and produce things that can be used to defend the country. That has the side benefit of being a “big stick” to enable our other diplomatic initiatives. It also has the benefit of producing technology with civilian application (like GPS) which helps our competitiveness.
With entitlement spending, you start with dependent clients and get....more dependent clients. And public union employees. How exactly does that help us?
Of course, you could just NOT spend the $$ at all. That might be the best of both worlds. But, if you’re gonna spend Government $$, defense is the way to go.
Bingo, and nothing is going to change until it returns.
What drove manufacturing offshore was not free trade it was our desire for higher wages (cost of product) that drove it offshore.
That is exactly right. It's an endless financial black hole of need that would rival anything Stephen Hawkins could conceive. We have bums that have been living in Dallas Section 8 housing for as long as forty years in some cases. Why bother to ever attempt to work your way up provrebial ladder when all you've really have to do is sit there and suck air?
One thing is for sure, we will not recover from this without producing goods and services using our own resources, can't be done any other way.
Oh, how could I forget to mention the tax structure?
Free trade only became a big factor when company managements recognized how badly they had run their businesses, unions recognized that there wasn't going to be any more free ride, and both expected government protection since the government had frequently aided the creation of competitors in foreign nations. That's the way it goes when managers don't manage, it's all fun and games until someone gets hit in the head with a brick. That's why I don't expect GM or Chrysler to make it in the longer run, they avoided getting hit in the head with a brick so for them it's all still fun and games.
Naturally, YMMV and I'm sure many folks think there's a case for a more lopsided allocation of blame.
Regards
I know. Saying Entitlement Spending is 5X as wasteful as Defense spending is probably a gross understatment.
Actually, protectionism is at the root of a lot of the evils that beguile U.S. (and Canadian) manufacturing. With protectionism, the auto industry had no incentive to rein in unions. With protectionism, industries thought they could pass on the costs of environmental, and other regulations to the consumers. Free trade simply returned the economy to free-market principles. Unfortunately, a lot of the damage was already done.
“With entitlement spending, you start with dependent clients and get....more dependent clients. And public union employees. How exactly does that help us?”
Well, to be fair, it looks like some entitlement spending is helping the gambling industry..
http://www.freerepublic.com/focus/f-news/2575512/posts
Yeah, keep telling yourself that.
It will end badly.
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