Washington’s Blog has been running a provocative series of posts about the possibility the US might start a war to get out of the recession. He thinks the argument is bogus, that war in fact creates recessions rather than ending them, but that hasn’t stopped such wars from occuring in the past. In other words, is the US economy based on war?
PhD economist Marc Faber predicts that the U.S. will launch a war to distract people from the bad economy.
“Military Keynesianism” – using military spending to stimulate the economy – has been U.S. policy for half a century. And the economist who coined that term said that such a policy always and “inexorably” leads to “an actual war” in order to justify all of the military spending.
Interestingly, while the argument is a standard one on the far left, that the US economy is based on war, Washington’s Blog doesn’t view it as a left-right issue or frame it in the dismal timeworn jargon of the US socialist left. Probably because he’s not socialist. Instead he presents factual, documented articles about how the US has historically relied on war to goose the economy, and he does so in a non-partisan way.
Meanwhile, as I’ve often blogged here, the US far left and socialist left has been so asleep during this major crisis of capitalism that one must seriously ask, why is this? Marxist groupuscles (who sometimes yield considerable influence through front groups) have dreamed of such a crisis for decades. Yet they are ignoring it now that it’s here. One group is running micro electoral campaigns they have no chance of making an impact in while another has just decided to champion LGBT rights. Like I said, they are studiously ignoring the economic crisis and focusing on other things. Most bizarre. Were they just play-acting all along? Have they been compromised by government agents? Are their leaders afraid their itty bitty empires would be upset by actual class struggle? Dunno, and the reality is, fewer and fewer in the US even care.
So, it’s Washington’s Blog, Zero Hedge, Naked Capitalism, Mish (and others) who are pushing the envelope, asking the hard questions and doing the real investigative work. They may not know it, but they are the ones doing the organizing. And now the issues of the US economy being based on permanent war, the banksters being in control of DC, the plundering by an elite few of the rest of us, have been reaching entirely new, receptive audiences.