How the U.S. Empire Contributed to the Economic Crisis
by Ivan Eland
9 May 09 | AWC
A few — and only a few — prescient commentators have questioned whether the U.S. can sustain its informal global empire in the wake of the most severe economic crisis since World War II.
And the simultaneous quagmires in Iraq and Afghanistan are leading more and more opinion leaders and taxpayers to this question. But the U.S. Empire helped cause the meltdown in the first place.
War has a history of causing financial and economic calamities. It does so directly by almost always causing inflation — that is, too much money chasing too few goods. During wartime, governments usually commandeer resources from the private sector into the government realm to fund the fighting. This action leaves shortages of resources to make consumer goods and their components, therefore pushing prices up. Making things worse, governments often times print money to fund the war, thus adding to the amount of money chasing the smaller number of consumer goods. Such “make-believe” wealth has funded many U.S. wars. >>>