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I kinda folded a bunch of things together in my post, and arguably still haven't sorted them all out in my own mind.
I do think the economy was "better" in the '60s than the '90s. Growth was more widely distributed, more people came up out of poverty into something like full participation in the consumer economy, there were many more jobs that felt like careers as opposed to waiter gigs while you try and sell your screenplay, etc. Most especially, CEO's made 50 times what line workers made, not 300 times. In the '90s we had instead a very visibly overblown dot-com boom, which made a bunch of money for a few smart people, chewed up a bunch of money from some less smart (or more easily bamboozled) people, and certainly hid the problem that the old economy of real goods and services was being outsourced.
Your mention of Iraq does of course implicitly invoke the elephant in the room of the '60s revival wing, the Vietnam war. We didn't go into Nam with shock and awe blazing, we did it stealthily and gradually, a few military advisers here, a couple CIA spooks there, and it wasn't until 1968 (if I recall correctly) that our troops were directly fighting the North Vietnamese, with neither side's proxy army really necessary, and all our comforting illusions evaporated. The major boosters of that war were the red-baiters and the military-industrial complex, both well represented among Nixonians and the cabal in charge today. (You've probably noticed how closely the PNAC policy prescriptions resemble the kind of strategies we used to accuse the Commies of; the laughable notion that a free and independent Iraq would lead to newly hatched democracies all over the Middle East is just our screwball attempt at a domino theory.)
I hope that my ragging on Clinton isn't just a DU-inspired anti-DLC reflex. The point where I think I decided I'd had it with him was when he booted Joycelyn Elders, at which point I decided that he was just too prepared to compromise. I believed then, and believe now as strongly as ever, that the Republican brain trust bequeathed to us by Nixon, Reagan, Bush41 and their various fixers are all basically criminals and should never be compromised with. Instead Clinton allowed them enough input into welfare reform, NAFTA, telecom/cable/utility deregulation etc. to seriously fuck over the American people. Enron wasn't an accident, Phil Gramm wrote the legislation that made it possible, and Clinton signed it. It really is the economy, stupid, in many ways Clinton didn't even notice. The best we can hope for under existing law is a future of untrammelled corporate feudalism.
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