Monday, May 26, 2008

USA: The history of war and recession

The military industrial complex of USA cannot sustain its growth without waging a war. There is a direct link between recession and war in case of USA. The history shows that USA uses war as a tool to avoid recessions or recover from a recession.

USA got out of the Great Depression by inflaming World War II. After the end of the World War II, it started the Korean War to keep out of recession. The Vietnam War helped USA to avoid a deep recession from 1957 to 1973.

After its humiliating defeat in Vietnam, USA tried to avoid direct conflicts from 1975 until 1990. However, USA kept involved in many proxy wars against USSR (Russia) in Afghanistan and against Iran in Gulf by helping Sadam Hussain. USA started First Gulf War in 1990 to kick-start its economy, which was becoming weak.

After the dot-com crash in 2000, the only way out for USA was to open another front and start a fresh war, which it did in the disguise of War on Terrorism. Accounting scandals of 2002 prompted USA to invade Iraq in 2003 to raise funds to keep its military industrial complex running.

Now USA is in a deep economic conundrum and USA’s establishment cannot do any thing about it but to start a new war. However, it is impossible for it to do so because the world is united against the efforts of USA to start a new war against Iran.