When I was a kid growing up in the 60s, I was enthralled by the Space Program, especially the Moon Shot, whose 40th anniversary is being celebrated. I read numerous books on space exploration, watched all the launches on TV, and even once cut Saturday catechism class to watch a Gemini launch.
But a lot has happened since then, including the ongoing bankruptcy of America. A few thoughts:
Regime uncertainty
Robert Higgs has come up with a useful concept: “regime uncertainty.” Is the government a) helping businesses grow and create jobs by keeping the currency stable and reducing taxes and regulations; then the regime is certain and stable.
Or is the government b) hammering businesses with inflation and wild new spending coupled with new taxes and regulations. Then there is “regime uncertainty. Nobody knows what’s going to happen next, so economic planning and investment are difficult, sometimes impossible.
LBJ’s wild spending
So let’s look at the last 45 years:
After LBJ’s 1964 landslide, he and the Democratic Congress did b), greatly increasing “regime uncertainty.” They went on a spending binge on his Great Society socialist schemes. The cost of them, over the years, has been immense — tens of trillions of dollars.
In 1965, he escalated the Vietnam War, eventually putting 550,000 troops in Nam. The total cost of the war (1965-1973) was $100 billion then, about $3 trillion today factoring inflation and population growth — about the same cost of the Iraq War (so far).
And he (and JFK and Nixon) wasted $10 billion on the Moon Shot, about $300 billion in today’s money.
With the federal budget buckling, in 1968 LBJ pushed through a 10% income tax surtax that brought on a recession. He and the Fed also began inflating the currency — the usual government tactic of cheating people by paying them with money actually worth less than what’s written on the bills.
Nixon’s the One!
The recession, Nam, Great Society welfarism, riots, and the whole mess of 1968 brought us Nixon. If he had had any sense, he would have demanded that Congress make the Vietnam War legit by declaring war; Congress would not have done so, so he could have ended it posthaste, saving about half the final cost in lives (58,000 Americans dead, 3.2 million Viets dead) and treasure. He didn’t. He should have fought LBJ’s Great Society. He didn’t, instead funding and expanding it (for example, with affirmative action).
And Nixon should have ended the inflation by returning to a rock-solid gold standard at $35 an ounce. Instead, in 1971 as part of his New Economic Policy (same name as Lenin’s), he took us off gold for the first time under the Constitution (except for Lincoln’s greenbacks), sparking the inflation that has plagued us ever since. He also increased taxes and tariffs.
The cost of the spending binge
So, add up the LBJ-Nixon spending binge, in today’s adjusted dollars: $3 trillion for Nam, $300 billion for the Moon Shot, tens of trillions for the Great Society.
Although the Moon Shot wasn’t the main part of the spending binge, it was a large part of it.
In addition in 1972 Congress indexed Socialist Security to the inflation rate, with Nixon’s backing. Except the index was to the cost-of-living rate, NOT to wages — a completely idiotic thing to do. The result is that at times like these in 2009, when jobs are dying and pay is stagnant, oldsters still get a cost-of-living increase in Socialist Security — 5.8% for this year.
Did you get a raise of that much? I didn’t think so. Yet you’re forced to pay for the SS increase.
1970s-2000s
The 1970s were the Malaise. In the 1980s, Reagan stabilized the dollar, cut taxes and regulations for a few years and sparked growth. Bush I was a disaster.
In the 1990s, Clinton was a disaster for his first 2 years in office, then for his next 6 years, ever slick, actually cut taxes and was not too bad on spending.
In the 2000s, Bush II panicked after 9/11, inflated the currency, spent wildly on war and domestic waste, and enacted tax cuts that will expire next year. Now we have Obama, who is continuing Bush’s disastrous policies so much he should be adopted by the Bush family and dubbed Bush III.
No wonder the system is going bankrupt.
It’s even worse now
As bad as the 70s were, it’s even worse now — because now our manufacturing base is greatly eroded and the country is much less Christian. The whole superstructure of war, deficits, debt, inflation, and wild spending is collapsing like a cheap card table. There shall be wailing and gnashing of teeth.