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Re: Popular Misconceptions
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Posted by Tim (more from Tim) on Fri, 9 Jul 2010 17:06:26 Share Post by Email
In Reply to: Re: Popular Misconceptions, kkelley, Fri, 9 Jul 2010 16:15:22
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Russia/Soviets, Italy, Japan and Germany just happened to embrace fascism earlier than others. It's hard not to embrace fascism once a society goes down the route of government controlled economy. See the other post on how GDP/GNP is calculated. Even John Maynard Keynes himself admitted in the German version of "General Theory" that it would be easier for the fascist governments to implement his policy recommendations than a western democracy would be able to, in a rather candid moment trying to sell his theory to the mid-1930's Germany. So much for speaking truth to power. The whole theory was concocted to pander to power.

There eventually is a problem with governments keep paying $60,000 for toilets as a way of boosting GNP/GDP: people know that an identical or similar toilet cost only $60, therefore it's transparently obvious that the government officials' overpayment is a way of enriching their friends in the toilet-making industry. So a different category of goods had to be found to justify the overpayment, a category of goods that are not comparable to anything in a normal market place . . . war making munition fit that category very nicely. That's why every government-controlled (i.e. fascist) economy eventually become very focused on making weapons of war. A belligerent outlook is needed to convince the public the need for so much military spending. As the host economy falls apart from inside out under central-planning, the need to loot the neighbors also became a necessity.

German and Japan (and Italy) would have been far better off obtaining outside resources through peaceful trade . . . just like the invasion and military control of Iraq actually makes oil more expensive not cheaper in US dollar terms.

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