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'''Guns or butter''' is an economic concept that describes government allocation to defense spending versus the sacrifices imposed on [[consumer]]s 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 [[liberal]]s 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.<ref>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 [[moral]]s. When sale of [[nylon]] stockings was banned so the material could be used to make [[parachute]]s, women used mascara to paint the illusion of stockings on their legs.</ref><ref>[[aluminum]] for aircraft was strictly regulated and its use and consumption by the public banned. </ref><ref>[[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.</ref> 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 [[deficit spending|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==
*''[[Frischer, fröhlicher Krieg]]''

== External links ==

*[https://quickonomics.com/terms/guns-versus-butter-model/ Guns Versus Butter Model], Quickonomics.com
*[https://larrycjohnson.substack.com/p/strategic-oil-reserve-nears-collapse Strategic Oil Reserve Nears Collapse… US Must Choose: Guns or Butter], [[Larry Johnson]], Jun 20, 2026

==References==
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[[Category: Economics]]