According to the Times, Wilson "characterized military spending as more than a matter of national defense--indeed a bread-and-butter jobs issue for California." Is Wilson implying that we have no alternative to military spending to keep unemployment down to 6%?
Housing and education would certainly be worthy replacements for defense spending, and could no doubt provide at least as many jobs for the taxpayer's dollar.
Government spending of tax money and borrowed funds is obviously keeping our economy going and the stock market up. So what has changed since the Reagan Administration has been in power?
- Inflation is down. The corollary is that the national debt has doubled, masking the inflation, and the dollar has fallen. Eventually, only printing a lot more money (inflation) will bring down the debt or pay it off.