Monday, November 12, 2007

Wealth and The Moral Hazards of War Without Economic Pain - Vol. 3 Issue 90

So, why DID the Bush-Cheney gang proceed with the attack and occupation of Iraq? It seems somewhat inexplicable, especially given the history of the first President Bush’s involvement in the first Gulf War. Bush-the-Elder’s advisors, both military and political, were wise enough to advise the first President Bush NOT to engage in a full-scale invasion and occupation of Iraq. The younger Bush and his Vulcan brain trust ignored the advice of those “wise men,” (Brent Scowcroft, James Baker, Colin Powell and others) and plunged into a tragic and hideously expensive disaster.

The burning question is this: Why did the brain trust of the 2nd Bush think the War would be so easy militarily and economically? Here is the answer. Clinton left the economy in such good condition that Bush didn’t have to worry that spending on the War would require any sacrifice (i.e., tax increase). The Federal surplus was so large that the DOD budget was secure. The government had so much money available that the Bushies felt they could CUT taxes and wage war at the same time. Therein lies the moral folly. A nation can’t wage a successful war without the full support of its people. Generally, that support takes the form of a willingness to make economic contributions to the war effort (taxes). Yet there was no call for sacrifice and no call for economic contribution by President Bush. Bush I, knew he couldn’t invade Iraq because he DIDN’T HAVE THE MONEY UNLESS HE RAISED TAXES. Bush II had no such worries. So, it’s like this, we face a profound moral danger when our nation is so wealthy (or thinks it is) that it can wage war without sacrifice. Well, the money has now been spent and the wealthiest 1% have gotten there tax cut, which leaves us to ponder, NOW WHAT? If you think the recent plunging of the dollar against other currencies is an aberration, remember this: It’s not the money, IT’S THE MONEY!

Getting ready for new taxes, I remain

Savant