People's History of the United States_ 1492 to Present, A - Zinn, Howard [347]
As the years went by and the problem was kept behind a screen, it was going to take more and more money to pay depositors and bail out these banks. The figure began to reach $200 billion. During the 1988 presidential campaign, the Democratic candidate Michael Dukakis was restrained from pointing the finger at the Republican administration because the Democrats in Congress were heavily involved in bringing about and then covering up the situation. So the voters were kept in the dark.
The enormous drain of money from the treasury for defense had once been declared by President Eisenhower to be a “theft” from human needs. But it was accepted by both parties, as Democrats competed with Republicans to show the electorate how “tough” they were.
Jimmy Carter as president had proposed a $10 billion increase in the military budget, an enactment of exactly what Eisenhower had described. All of the huge military budgets of the post–World War II period, from Truman to Reagan and Bush, were approved overwhelmingly by both Democrats and Republicans.
The spending of trillions of dollars to build up nuclear and nonnuclear forces was justified by fears that the Soviet Union, also building up its military forces, would invade Western Europe. But George Kennan, the former ambassador to the Soviet Union and one of the theoreticians of the cold war, said this fear had no basis in reality. And Harry Rositzke, who worked for the CIA for twenty-five years and was at one time CIA director of espionage operations against the Soviet Union, wrote in the 1980s: “In all of my years in government and since I have never seen an intelligence estimate that shows how it would be profitable to Soviet interests to invade Western Europe or to attack the United States.”
However, the creation of such a fear in the public mind was useful in arguing for the building of frightful and superfluous weapons. For instance, the Trident submarine, which was capable of firing hundreds of nuclear warheads, cost $1.5 billion. It was totally useless except in a nuclear war, in which case it would only add several hundred warheads to the tens of thousands already available. That $1.5 billion was enough to finance a five-year program of child immunization around the world against deadly diseases, and prevent five million deaths (Ruth Sivard, World Military and Social Expenditures 1987–1988).
In the mid-1980s, an analyst with the Rand Corporation, which did research for the Defense Department, told an interviewer in an unusually candid statement, that the enormous number of weapons was unnecessary from a military point of view, but were useful to convey a certain image at home and abroad:
If you had a strong president, a strong secretary of defense they could temporarily go to Congress and say, “We’re only going to build what we need. . . . And if the Russians build twice as many, tough.” But it would be unstable politically. . . . And it is therefore better for our own domestic stability as well as international perceptions to insist that we remain good competitors even though the objective significance of the competition is . . . dubious.
In 1984, the CIA admitted that it had exaggerated Soviet military expenditures, that since 1975 it had claimed Soviet military spending was growing by 4 to 5 percent each year when the actual figure was 2 percent. Thus, by misinformation, even deception, the result was to inflate military expenditures.
One of the favorite military programs of the Reagan administration was the Star Wars program, in which billions were spent, supposedly to build a shield in space to stop enemy nuclear missiles in midair. But the first three tests of the technology failed. A fourth test was undertaken, with government funding for the program