[lbo-talk] Krugman on interest rate weirdness

[MK]

Hey - I'm trying to understand the last sentence in the excerpt  
below. I think Doug is saying that 'they', the beneficiaries of Bush- 
era augmented military spending, are not directly responsible for the  
hike in the price of oil. But, as Stiglitz has asserted, the war has  
otherwise affected the price of oil, right?

http://www.vanityfair.com/politics/features/2008/04/stiglitz200804

My understanding is that it has to do with the devastation wrought to  
the country - any references would be appreciated.

Thanks.

Maryellen

On Mon, 24 Mar 2008, Doug Henwood wrote:


> What's up with Krugman lately? His NYT col today takes Obama to task
> for claiming that the Iraq war has hurt the U.S. economy, pointing to
> the stimulative effect of wars in the past. But earlier wars involved
> huge procurements of tanks and boots; this one doesn't. Much of the
> rise in military spending in the Bush years has gone to low-
> multiplier R&D and contractors, not high-multiplier durable goods.
> And they didn't help drive the oil price up over $100.