Wednesday, March 22, 2006
Militarily, we've got an incoherent, not very intelligent budget. It becomes less incoherent only when you realize the ways it's being used to fund our industries or that one of the few things we still manufacture reasonably effectively is weapons. It's a huge export business, run not by the companies but by foreign military sales within the Pentagon.This is not, of course, free enterprise. Four huge manufacturers with only one major customer. This is state socialism and it's keeping the economy running not in the way it's taught in any economics course in any American university. It's closer to what John Maynard Keynes advocated for getting out of the Great Depression -- counter-cyclical governmental expenditures to keep people employed.
And the precedents for this should really terrify us. The greatest single previous example of military Keynesianism -- that is, of taking an economy distraught over recession or depression, over people being very close to the edge and turning it around -- is Germany. Remember, for the five years after Adolf Hitler became chancellor in 1933, he was admired as one of the geniuses of modern times. And people were put back to work. This was done entirely through military Keynesianism, an alliance between the Nazi Party and German manufacturers.
