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davidswanson Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 02:00 AM
Original message
It's Jobs or Wars, Not Both
The Washington Post's David Broder thinks more war will bring us more jobs. Unlike in Germany, where the president was forced out of office earlier this year for suggesting that war in Afghanistan could benefit the German economy, Americans don't seem to have serious moral qualms about slaughtering human beings for no good reason. We've got three significant wars and a variety of secretive military actions going on now without the slightest mention in our elections. A majority of Americans tell pollsters that the wars should end, but virtually no one tells candidates. However, one has to assume -- for the sake of one's own sanity -- that even Americans, if they knew, would seriously object to further damaging our economy through war and allowing people like David Broder to paper over that process with demonstrably false claims.

Contrary to partisan myths and stereotypes, U.S. military spending has been on the rise these past two years. And military towns have seen a boom this past decade. But spending money on the military, even in the United States, hurts the U.S. economy. Spending money on foreign wars is even worse, but all military spending is economically destructive. It's worse, economically, than doing nothing. Failing to spend that money and instead cutting taxes would create more jobs than investing it in the military. Investing it in useful industries like mass transit or education would have a much stronger impact and create many more jobs. But even nothing, even cutting taxes, would do less harm than military spending. And that's domestic military spending; spending on foreign wars, funding the Taliban, funding Karzai, misplacing $17 billion, etc., all does even more economic harm.

Yes, harm. Every military job, every weapons industry job, every war-reconstruction job, every mercenary or torture consultant job is as much a lie as any war justification. It appears to be a job, but it is not a job. It is the absence of more and better jobs. It is public money wasted on something worse for job creation than nothing at all and much worse than other available options.

Robert Pollin and Heidi Garrett-Peltier, of the Political Economy Research Institute, have collected the data. Each billion dollars of government spending invested in the military creates about 12,000 jobs. Investing it instead in tax cuts for personal consumption generates approximately 15,000 jobs. But putting it into healthcare gives us 18,000 jobs, in home weatherization and infrastructure also 18,000 jobs, in education 25,000 jobs, and in mass transit 27,700 jobs. In education the average wages and benefits of the 25,000 jobs created is significantly higher than that of the military's 12,000 jobs. In the other fields, the average wages and benefits created are lower than in the military (at least as long as only financial benefits are considered), but the net impact on the economy is greater due to the greater number of jobs. The option of cutting taxes does not have a larger net impact, but it does create 3,000 more jobs per billion dollars.

There is a common belief that World War II spending ended the Great Depression. That seems very far from clear, and economists are not in agreement on it. What I think we can say with some confidence is, first, that the military spending of World War II at the very least did not prevent recovery from the Great Depression, and second, that similar levels of spending on other industries would very likely have improved that recovery.

We would have more jobs and they would pay more, and we would be more intelligent and peaceful if we invested in education rather than war. But does that prove that military spending is destroying our economy? Well, consider this lesson from post-war history. If you had that higher paying education job rather than the lower paying military job or no job at all, your kids could have the free quality education that your job and your colleagues' jobs provided. If we didn't dump over half of our discretionary government spending into war, we could have free quality education from preschool through college. We could have several life-changing amenities, including paid retirements, vacations, parental leave, healthcare, and transportation. We could have guaranteed employment. You'd be making more money, working fewer hours, with greatly reduced expenses. How can I be so sure this is possible? Because I know a secret that is often kept from us by American media: there are other nations on this planet.

Steven Hill's new book "Europe's Promise: Why the European Way Is the Best Hope in an Insecure Age" has a message we should find very encouraging. The European Union (EU) is the world's largest and most competitive economy, and most of those living in it are wealthier, healthier, and happier than most Americans. Europeans work shorter hours, have a greater say in how their employers behave, receive lengthy paid vacations and paid parental leave, can rely on guaranteed paid pensions, have free or extremely inexpensive comprehensive and preventative healthcare, enjoy free or extremely inexpensive educations from preschool through college, impose only half the per-capita environmental damage of Americans, endure a fraction of the violence found in the United States, imprison a fraction of the prisoners locked up here, and benefit from democratic representation, engagement, and civil liberties unimagined in the land where we're teased that the world hates us for our rather mediocre "freedoms." Europe even offers a model foreign policy, bringing neighboring nations toward democracy by holding out the prospect of EU membership, while we drive other nations away from good governance at great expense of blood and treasure.

Of course, this would all be good news, if not for the extreme and horrible danger of higher taxes! Working less and living longer with less illness, a cleaner environment, a better education, more cultural enjoyments, paid vacations, and governments that respond better to the public — that all sounds nice, but the reality involves the ultimate evil of higher taxes! Or does it?

As Hill points out, Europeans do pay higher income taxes, but they generally pay lower state, local, property, and social security taxes. They also pay those higher income taxes out of a larger paycheck. And what Europeans keep in earned income they do not have to spend on healthcare or college or job training or numerous other expenses that are hardly optional but that we seem intent on celebrating our privilege to pay for individually.

If we pay roughly as much as Europeans in taxes, why do we additionally have to pay for everything we need on our own? Why don't our taxes pay for our needs? The primary reason is that so much of our tax money goes to wars and the military.

We also funnel it to the wealthiest among us through corporate tax breaks and bailouts. And our solutions to human needs like healthcare are incredibly inefficient. In a given year, our government gives roughly $300 billion in tax breaks to businesses for their employee health benefits. That's enough to actually pay for everyone in this country to have healthcare, but it's just a fraction of what we dump into the for-profit healthcare system that, as its name suggests, exists primarily to generate profits. Most of what we waste on this madness does not go through the government, a fact of which we are inordinately proud.

We are also proud, however, of shoveling huge piles of cash through the government and into the military industrial complex. And that is the most glaring difference between us and Europe. But this reflects more of a difference between our governments than between our peoples. Americans, in polls and surveys, would prefer to move much of our money from the military to human needs. The problem is primarily that our views are not represented in our government, as this anecdote from Europe's Promise suggests:

"A few years ago, an American acquaintance of mine who lives in Sweden told me that he and his Swedish wife were in New York City and, quite by chance, ended up sharing a limousine to the theatre district with then-U.S. Senator John Breaux from Louisiana and his wife. Breaux, a conservative, anti-tax Democrat, asked my acquaintance about Sweden and swaggeringly commented about 'all those taxes the Swedes pay,' to which this American replied, 'The problem with Americans and their taxes is that we get nothing for them.' He then went on to tell Breaux about the comprehensive level of services and benefits that Swedes receive in return for their taxes. 'If Americans knew what Swedes receive for their taxes, we would probably riot,' he told the senator. The rest of the ride to the theater district was unsurprisingly quiet."

Now, if you consider debt meaningless and are not troubled by borrowing trillions of dollars, then cutting the military and enlarging education and other useful programs are two separate topics. You could be persuaded on one but not the other. However, the argument used in Washington, D.C., against greater spending on human needs usually focuses on the supposed lack of money and the need for a balanced budget. Given this political dynamic, whether or not you think a balanced budget is helpful in itself, wars and domestic issues are inseparable. The money is coming from the same pot, and we have to choose whether to spend it here or there. As the Washington Post tries to sell us another war, you will see the same Washington Post push cuts to Social Security.

Earlier this year, Rethink Afghanistan created a tool on FaceBook that allows you to re-spend, as you see fit, the trillion dollars in tax money that had, by that point, been spent on the wars on Iraq and Afghanistan. I clicked to add various items to my "shopping cart" and then checked to see what I'd acquired. I was able to hire every worker in Afghanistan for a year at $12 billion, build 3 million affordable housing units in the United States for $387 billion, and provide healthcare for a million average Americans for $3.4 billion and for a million children for $2.3 billion.

Still within the $1 trillion limit, I managed to also hire a million music/arts teachers for a year for $58.5 billion, and a million elementary school teachers for a year for $61.1 billion. I also placed a million kids in Head Start for a year for $7.3 billion. Then I gave 10 million students a one-year university scholarship for $79 billion. Finally, I decided to provide 5 million residences with renewable energy for $4.8 billion. Convinced I'd exceeding my spending limit, I proceeded to the shopping cart, only to be advised:

"You still have $384.5 billion to spare." Geez. What are we going to do with that?

A trillion dollars sure does go a long way when you don't have to kill anybody. And yet a trillion dollars was merely the direct cost of those two wars up to that point. On September 5th economists Joseph Stiglitz and Linda Bilmes published a column in the Washington Post, building on their earlier book of a similar title, "The True Cost of the Iraq War: $3 Trillion and Beyond." The authors argued that their estimate of $3 trillion for just the War on Iraq, first published in 2008, was probably low. Their calculation of the total cost of that war included the cost of diagnosing, treating and compensating disabled veterans, which by 2010 was higher than they had expected. And that was the least of it:

"Two years on, it has become clear to us that our estimate did not capture what may have been the conflict's most sobering expenses: those in the category of 'might have beens,' or what economists call opportunity costs. For instance, many have wondered aloud whether, absent the Iraq invasion, we would still be stuck in Afghanistan. And this is not the only 'what if' worth contemplating. We might also ask: If not for the war in Iraq, would oil prices have risen so rapidly? Would the federal debt be so high? Would the economic crisis have been so severe?

"The answer to all four of these questions is probably no. The central lesson of economics is that resources — including both money and attention — are scarce."


That lesson has not penetrated Capitol Hill, where Congress repeatedly chooses to fund wars while pretending it has no choice.

On June 22nd House Majority Leader Steny Hoyer spoke in a large private room at Union Station in Washington, D.C. and took questions. He had no answers for the questions I put to him.

Hoyer's topic was fiscal responsibility, and he said that his proposals — which were all pure vagueness — would be appropriate to enact "as soon as the economy is fully recovered." I'm not sure when that was expected.

Hoyer, as is the custom, bragged about cutting and trying to cut particular weapons systems. So I asked him how he could have neglected to mention two closely related points. First, he and his colleagues had been increasing the overall military budget each year. Second, he was working to fund the escalation of the war in Afghanistan with a "supplemental" bill that kept the expenses off the books, outside the budget.

Hoyer replied that all such issues should be "on the table." But he did not explain his failure to put them there or suggest how he would act on them. None of the assembled Washington press corpse (sic) followed up.

Two other people asked good questions about why in the world Hoyer would want to go after Social Security or Medicare. One guy asked why we couldn't go after Wall Street instead. Hoyer mumbled about passing regulatory reform, and blamed Bush.

Hoyer repeatedly deferred to President Obama. In fact, he said that if the president's commission on the deficit (a commission apparently designed to propose cuts to Social Security, a commission commonly referred to as the "catfood commission" for what it may reduce our senior citizens to consuming for dinner) produced any recommendations, and if the Senate passed them, then he and House Speaker Nancy Pelosi would put them on the floor for a vote — no matter what they might be.

In fact, shortly after this event, the House passed a rule putting in place the requirement that it vote on any catfood commission measures passed by the Senate.

Later Hoyer informed us that only a president can stop spending. I spoke up and asked him "If you don't pass it, how does the President sign it?" The Majority Leader stared back at me like a deer in the headlights. He said nothing.

There are 115 incumbents and 99 challengers who will stop funding wars, and many more who will not. But how many Washington DC-area liberals will ever stop funding David Broder?

David Swanson is author of the forthcoming book "War Is A Lie," http://warisalie.org

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unhappycamper Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 03:25 AM
Response to Original message
1. I'm currently finishing up a Paul Atwood book: War and Empire
I'm pretty familiar with the decimation of Native Americans from when "God gave this country to us", many of the fun little wars of the 18th and 19th centuries, and am currently reading about Wilson's sleazy way of getting the US into WW I and FDR getting us into WW II.

We are a warmongering, lying people.
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Scruffy1 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 04:04 AM
Response to Reply #1
4. Thanks for the great post
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laughingliberal Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 03:37 AM
Response to Original message
2. K & R nt
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southmost Donating Member (528 posts) Send PM | Profile | Ignore Mon Nov-01-10 03:43 AM
Response to Original message
3. exactly
k&r
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Gravel Democrat Donating Member (598 posts) Send PM | Profile | Ignore Mon Nov-01-10 04:20 AM
Response to Original message
5. A Person paying $20,000 in income tax this year paid for 10 seconds
of our current middle eastern dick swinging contest. I believe future generations (like in a thousand years, not 100 because humans are still so gd primitive) will call this slavery.

How Obama surrendered at home and waged war abroad By Tariq Ali
http://www.telegraph.co.uk/news/worldnews/northamerica/usa/barackobama/8097213/How-Obama-surrendered-at-home-and-waged-war-abroad.html

and Here's a Flash from the Past!

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quaker bill Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 05:37 AM
Response to Original message
6. Nicely written
A thought on WWII as compared to the current situation. Military production was idled after WWI and more so during the Great Depression, so the US stockpile of weapons and equimpent for war was not large. Germany rapidly took or destroyed most of the weapons production capacity in europe as well as a major portion of european weapons stockpiles. The US had to serve as the industrial backbone of military production for basically all the Allied forces in a very nearly symetrical all out war. Thst war consumed masses of equipment and lives so much so that the society was hard pressed universally to supply it.

Contrast this to the current situation. We have a massive military stockpile. A war with Iran would be a challenge, but still quite asymetrical. Our industrial capacity to produce the needed weapons is ready and would not be significantly challenged. Some companies might need to add staff, but not that many. Bullets are not assembled by labor anymore as my grandmother did during WWII. Making more of them requires a few more equipment operators and longer shifts, not the conversion of existing industrial capacity to war production.

The notion that war with Iran would bring about economic recovery along the lines seen in WWII is so ill informed and disconnected from reality, that only a Republican could utter it.
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Gravel Democrat Donating Member (598 posts) Send PM | Profile | Ignore Mon Nov-01-10 05:52 AM
Response to Reply #6
7. "only a Republican could utter it..."
What do WW 1, WW 2, Korea and Vietnam have in common?
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AlbertCat Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-02-10 09:33 AM
Response to Reply #6
18. The US had to serve as the industrial backbone of military production
Edited on Tue Nov-02-10 09:39 AM by AlbertCat
And....what was the tax rate then? I mean.... that enabled the Government to hire all those workers , creating jobs, and change factories over to war production, y'know.

You can see it all, (you'll have to scroll down) at

http://www.taxfoundation.org/files/fed_individual_rate_history-20100923.swf

Highlights:

1941
$26,000 - $32,000 51%
$150,000 - $200,000 70%
Highest - 81%

1942 - 1943
$26,000 - $32,000 61%
$150,000 - 200,000 87%
Highest - 88%

1944-1945
$26,000 - $32-000 65%
$150,000 - $200,000 93%
Highest - 94%


I assume Broder means to go back to these as well? I mean Krugman couldn't find, in all of WORLD HISTORY, a country that had tax cuts during wartime. Surely this is part of the national economy.
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txlibdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 06:45 AM
Response to Original message
8. Two things we CANNOT afford: the wars, and the rich
Two drains on our economy. Two evil organizations (when left
without strict and competent government control). Two wastes
of tax payer dollars. ... Two things we need to end now - get
rid of the wars and get rid of the rich!

"Top 10 percent of families own an average of $700,000 in
stocks while the next 15 percent own an average of $53,000.
The other 75 percent are insignificant"
http://www.mybudget360.com/the-debt-end-game-top-10-percent-of-families-own-an-average-of-700000-in-stocks/


"Top 1 Percent Control 42 Percent of Financial Wealth in
the U.S. – How Average Americans are Lured into Debt Servitude
by Promises of Mega Wealth."
http://www.mybudget360.com/top-1-percent-control-42-percent-of-financial-wealth-in-the-us-how-average-americans-are-lured-into-debt-servitude-by-promises-of-mega-wealth/


"As of 2007, the top 1% of households (the upper class)
owned 34.6% of all privately held wealth, and the next 19%
(the managerial, professional, and small business stratum) had
50.5%, which means that just 20% of the people owned a
remarkable 85%, leaving only 15% of the wealth for the bottom
80% (wage and salary workers)."
http://sociology.ucsc.edu/whorulesamerica/power/wealth.html


All the appologists for the rich say, "but the rich pay
all the taxes!"  WRONG! The top 10% pays 50% of all the
taxes. OMG! That sounds like a lot. But wait. They make 85% of
the income. So their net tax percentage is far less than yours
or mine. And if I was raking in all that dough every month I
wouldn't care if I had to pay a little taxes. I'd have enough
money to go or do whatever I want and buy all the politicians
I had to in order to get my taxes down. Ooops! Looks like
someone's already done that on behalf of the rich...
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creon Donating Member (723 posts) Send PM | Profile | Ignore Mon Nov-01-10 07:41 AM
Response to Original message
9. Guns and butter

You can't have both. One or the other.

The costs of war drive money out of domestic programs.
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bertman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 08:13 AM
Response to Original message
10. RECCED ENTHUSIASTICALLY. nt
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mmonk Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 08:16 AM
Response to Original message
11. Recommended.
Edited on Mon Nov-01-10 08:16 AM by mmonk
I have spent countless hours arguing about this subject with fellow Americans. In fact, the right in this country has spent plenty of energy telling Americans the lie that Roosevelt's New Deal did not help the US economy, but war lifted the US out of depressionary times. I have argued that they had their ideological trifecta of tax cuts, deregulation, and two wars, but yet the US economy collapsed. But cult beliefs are hard to defeat.
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txaslftist Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 09:03 AM
Response to Original message
12. You can't use Europe as a model when comparing military spending...
Because Western Europe's military spending is very strongly subsidized by being under the US' protective military umbrella. If there were not US bases in Germany, Britain, Italy and various other Western European locales, those nations would have to either abandon those bases (weakening themselves militarily) or staff and run them with their own people (incurring the costs).

One of the fallacies in US military spending is that military spending is "productive" in any way whatsoever. It is an added burden to the economy in all cases, just as spending on police is an added burden. It may be a necessary burden, but it is not productive. The military COSTS the productive economy money, as it is an expense theoretically designed to protect that economy and enable it to function free of the fear of disruptions caused by war. Much like police protection, it is purely an expense designed to insure that people can go about their lives (producing) in peace. The more that is spent on the military, the less is available for productive purposes.
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Ninten12 Donating Member (61 posts) Send PM | Profile | Ignore Mon Nov-01-10 11:04 PM
Response to Reply #12
17. You can't compare the US spending to anything...
Military spending is an obscene national shame! There is NO way that it is sustainable but alas, the US military are the real rulers of the US of A. They have been ever since they killed JFK.

This vet is disgusted by the fact that half of this country's expenditures goes towards the military. That is a nation that is a proven failure. The military is nothing more than the dogs made to fetch for the ruling kkkorporate elite. Just why are we in Saudi Arabia again? To preserve democracy? Nope, that's not it!
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txaslftist Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-02-10 12:12 PM
Response to Reply #17
20. Well, a famous economist (I don't remember who) once remarked...
that if something is unsustainable, it will stop...
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TBF Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 09:20 AM
Response to Original message
13. The military appears to be the sole job program. nt
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AlbertCat Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-02-10 09:44 AM
Response to Reply #13
19. The military appears to be the sole job program.
Edited on Tue Nov-02-10 09:46 AM by AlbertCat
And they don't even do their own KP duty anymore!


The Pentagon is a welfare program for Government contractors.
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Panaconda Donating Member (672 posts) Send PM | Profile | Ignore Mon Nov-01-10 09:21 AM
Response to Original message
14. K&R
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TheKentuckian Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 09:35 AM
Response to Original message
15. Smart piece with a common sense message.
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LiberalEsto Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-01-10 11:06 AM
Response to Original message
16. Still another option
Ship the decrepit and useless Broder off to the glue factory and give his column space to a progressive writer.
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de novo Donating Member (590 posts) Send PM | Profile | Ignore Tue Nov-02-10 12:16 PM
Response to Original message
21. Recommended.
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Blue_Tires Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-02-10 12:24 PM
Response to Original message
22. ttt
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