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Glenn Ashmore
 
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Default OT - The Cost of War

What you are describing is basic Keynesian economics. Despised by
Republicans since the New Deal. Now they are bragging on it.

--
Glenn Ashmore

I'm building a 45' cutter in strip/composite. Watch my progress (or lack
there of) at: http://www.rutuonline.com
Shameless Commercial Division: http://www.spade-anchor-us.com

"Koz" wrote in message
...


Too_Many_Tools wrote:

I can think of better ways of spending my share of the $2 trillion
dollars.

How about your share?

TMT


Cost of Iraq war could top $2 trillion: study By Jason Szep
snip

One scary thought is how the economy will react when the huge dollar
volume of rubber checks for war supplies and related items *has* to be cut
off. Of course the econony looks good right now....at least $ 100 billion
(low number to quell debates about value) is being thrown at the economy
per year. If you want to get real black helicopter on things...it's not
much different than the book 1984 where you have production without an
increase in the standard of living...make stuff then destroy it so you can
keep the economy going.

If you take a more realistic number of 250 billion per year going directly
and indirectly to the war, that's about $ 1000 per person per year that's
being thrown at the econony. The conservatives claimed that the $ 250 per
taxpayer one time tax rebate really got things rolling again....how much
is $ 1000 per *person* for at least 3 years keeping things rolling?

However, the time will come when this has to end. What of machine shops
and US producers at that point? how much will it hurt the auto makers
when they aren't producing bradley's and humvees like they are going out
of style? It's a LOT easier to scale up than to scale down production. I
suspect that there will be massive lay offs and a real depression when the
money dries up.

Either the Govt keeps writing rubber checks to keep it in place or the rug
gets pulled out from under the cash flow. Bush can't "win". If he does,
the economy is screwed.

Koz