Guns or butter
Guns or butter is an economic concept that describes government allocation to defense spending versus the sacrifices imposed on consumers in the private sector during wartime. The debate originated in the United States Congress during World War I over butyric acid (from which butter gets its name), whether it should be restricted or rationed for civilian consumption in order to produce explosives.
Conversely, guns and butter is a phrase used by liberals that refers to a government policy that tries to maintain living standards without alarming the public which could create opposition and resistance to a war among the civilian population. The idea is that is that the debate is over, a choice isn't necessary, policymakers can have both, the public can be kept in the dark about the severity of the struggle with prosperity maintained through classic Keynesian deficit spending.
In two world wars the United States had a guns or butter policy that imposed rationing on gasoline and privations of other common consumer items.[1][2][3] During the Vietnam war of the 1960s the United States Congress had a guns and butter policy without tax increases, while at the same time relying on heavy government borrowing to pay for the war. This eventually led to the end of the Bretton Woods system, the dollar's link to gold, high inflation, and an uncontrollable national debt which remains an unsolvable problem in America well into the 21st century.
See also
External links
- Guns Versus Butter Model, Quickonomics.com
- Strategic Oil Reserve Nears Collapse… US Must Choose: Guns or Butter, Larry Johnson, Jun 20, 2026
References
- ↑ See https://www.perfumepassage.org/news/paint-hosiery-during-war-years or https://www.smithsonianmag.com/arts-culture/stocking-series-part-1-wartime-rationing-and-nylon-riots-25391066/ Women who were "bare-legged" in public without hosiery were thought to be loose or of easy morals. When sale of nylon stockings was banned so the material could be used to make parachutes, women used mascara to paint the illusion of stockings on their legs.
- ↑ aluminum for aircraft was strictly regulated and its use and consumption by the public banned.
- ↑ Wage and price controls were also imposed. Even if regulated or banned goods and materials appeared on the blackmarket, they were out of the reach of most average workers.
