policy - The Black Vault

THE BDM CORPORATION
INSIGHTS
US Economy 0 During the early and mid 1960s, the Kennedy and Johnson
and the
administrations took the strength of the US economy for
Vietnam War granted and thus formulated substantial military programs
with little reference to what turned out to be
important economic limitations.
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Economic policies that were called for by the Vietnam
War were not perceived to be politically viable.
Either the war or the economy had to give, and with the
political commitment of successive administrations "not
to lose Vietnam," it was the economy that suffered.
US presidents pursued a "guns and butter" policy in the
1960s. The long-term results were a degradation of
both our national security posture and economic health.
LESSONS
Economic advisers to the president must be parties to
the process for developing wartime military requirements,
programs, strategies, and forecasts if they are
to develop stable, realistic, and effective economic
programs.
Short-term and relatively limited commitments of military
force can probably be sustained and supported by
the US economy without serious disruption to the civilian
economy. Lacking confident predictions of the
magnitude and duration of a military commitment, however,
an administration should take steps early to
educate both the public and the Congress of the likely
economic and political consequences of a prolonged
effort. In pursuing such - effort, the USG miust "bite
the bullet" by cutting back on other spending and by
assuring an appropriate tax base.
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