Unlike the era of FDR, war will not get the economy moving. The U.S. has been engaged in the longest war in our history in Afghanistan, still has tens of thousands of troops and mercenaries in Iraq and is expanding the war in Pakistan. Wars are not creating the kind of WW II war economy as the methods of war have changed. At a cost of $1 million borrowed dollars per troop per year in Afghanistan the war is a drain on the economy not a stimulus.
Spending on military certainly creates jobs, just not many compared to other spending or tax cuts . Spending $1 billion on the military creates 8,555 jobs while spending the same amount on mass transit would create 19,795 and on education 17,687. Even spending on tax cuts, not a great form of stimulus, is more efficient than the military, creating 10,779 jobs. Health care and infrastructure spending create about 12,800 jobs. The U.S. needs WWII in reverse, a rapid switch from a military-dominated economy to a civilian-dominated economy.
There are some signs of recovery finally, but there are also signs of frailty . At best the economy will recover hesitantly, but another collapse is also possible. The failure to heed the lessons of history increases the chances of the economy faltering rather than growing, and with that the debt will grow as well. This not a time for sacchrin and gimmicks. It is time to face reality and institute paradigm shifting change. It is time for a democratized economy that benefits all of us and to end an economy designed for concentrated corporate interests that benefit few.
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