I know I’ve talked about this before, but it never ceases to fascinate me how the Republicans can miraculously understand and believe in Keynesian economic theory when military spending is at stake, and then forget all about it later.
By the same token, I do think it was a mistake on the administration’s part to make those cuts during a period of sluggish economic growth. If you buy into Keynesian macro-economics, you have to admit, even if you oppose the military-industrial complex, that it is a useful economic tool. Maybe not the best way to build an economy in the long-run, as Richard Nixon kind of alluded to in the famous “Kitchen Debate“, but even so, it certainly does work the same way as any other fiscal stimulus program.
This kind of doublethink is quite irritating, but at the same time it’s important to see what underlies it: the huge divide between Republicans and Democrats. It is not just a matter of disagreement on economic theory, but on what the nation ought to be like and what it ought to produce. It’s much deeper than just economics.