imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
latest news
best of news




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Keynes in Uniform

by Edelbert Richter Saturday, Feb. 05, 2005 at 6:38 AM

Bush seems to have learned the same thing as former president Reagan from the histori-cal experience of the 1930s.. What helps are tax cuts and cuts in social spending.


By Edelbert Richter

[This article originally publoished in: Ossietzsky 5/2004 is translated from the German on the World Wide Web,]

That the “war against terror” began in a severe economic crisis encouraged the old dumb ideas. If we go back in history, the military hegemony of the US undeniably had its origin in the unmastered economic crisis of the 1930s.

Roosevelt with the New Deal succeeded in softening the crisis but could not overcome it. Compared to later interventionism, the state was still kept in modest limits. Growing resistance from the Supreme Court and his own ranks of the Democratic Party hindered the president in his second term in office. Thus the 1938 reform zeal ended. The number of unemployed that amounted to over twelve million in 1933 and then fell to under eight million rose again to more than ten million in 1938. The US share in world industrial production was even less than in 1932.

The mobilization for war and arms production led the economy of the United States out of the ten-year crisis. Unlike Europe, the US experienced the war as a time of economic upswing, not as a time of economic distress. From 1939 to 1945, the number of unemployed fell from ten million to less than one million. Industrial production doubled and the gross domestic product grew from billion to 1 billion. This was attained by increasing state activity in relation to the private economy. Until then this was unthinkable from the American tradition. The state relieved businesses of the financial risks of conversion to arms production and allowed violations of anti-trust laws. The armed forces were the greatest investor and customer of the economy. Thus the annual spending for the military that only amounted to three billion dollars in the 1920s and nine billion in the 1930s rose to billion by 1945.

With that, the ground was laid for the civil Keynesianism of the “Golden Age” (Eric Hobsbawm) that lasted to the start of the 1970s. However this long-lasting prosperity was secured through enormous arms spending above all in the Korean- and Vietnam wars. This military Keynesianism continued even after the neoliberal turn of 1980. The so-called military-industrial complex that emerged from the war economy of the early 1940s still exists today.

The conclusion seems obvious that the US economy automatically demands armaments and otherwise cannot function. Didn’t Roosevelt with his arms policy react primarily to the hopeless situation of his own civil economy and not to the threat by Hitler? Wasn’t the Cold War together with the threat of nuclear destruction a great theater to keep American capitalism going more than to combat socialism? Didn’t Reagan’s massive armaments force social interests to their knees, not primarily the Soviet Union? According to an analysis from the Reagan era (Erwin Muller: “Armament Policy and Armament Dynamic”: The Case of the US). This so-called internal control theory cannot explain the armament dynamic of the US. The foreign policy and foreign economic causes must be considered.

However Bush seems to have learned the same thing as former president Reagan from the historical experience of the 1930s. Socially oriented programs like the New Deal do not help capitalism out of crisis. What helps are tax cuts and cuts in social spending. That explains the great tax cut programs announced in 2001 and 2003. These would supposedly lead to such an economic dynamic that the state would even collect more taxes at the end. When that did not happen (and cannot happen), the state openly accepted new indebtedness. While the Federal budget still registered a surplus in 2000, there was already a deficit of 5 billion in 2002 that expanded to 5 billion in 2004 and will probably reach 5 billion in 2005. This impudent indebtedness is new in relation to the 1930s. This indebtedness opposes the liberal economic command of a balanced budget. The subservience toward the wealthy is openly admitted. The initiative is transferred to them.

The republicans have learned a second thing from the history: One should not wait as long as Roosevelt with armaments and war to master the crisis. Therefore Bush raised arms spending 30 percent compared to 2000. The costs of the Iraq war are not clear. So war becomes the normal means of politics again.

Report this post as:

Local News


lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

Doxa du lobby A25 2:03AM

Tech workers organize A24 6:24PM

Architect Stephen Francis Jones A24 3:01PM

UN Forum Wrestles with Economic Policies 10 Years After Financial Crisis Islands Call for A24 12:34PM

Xyloglossie attitudinale A23 8:07AM

Shadowgun Legends Hack and Cheats A23 7:24AM

What does the Quran Say About Islamic Dress?? A21 4:15PM

Biodiversité ou la nature privatisée A20 11:22AM

The Market is a Universal Totalitarian Religion A20 7:14AM

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

Prosecutors treat Muslims harsher than non-Muslims for the same crimes A08 10:33PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy