HIS 2-4 - Domestic Results 2

HIS 2-4 - Domestic Results 2 - Domestic Costs of the War...

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Domestic Costs of the War 1965-67 [2] 17/03/2008 09:07:00 Economic Situation Only 10% of GNP spent on war (compared to 13% in Korea, 40% in WW2, . 7% in Iraq) On average, $400,000 spent per Vietcong kill LBJ o Failed to cut non-military social spending o Failed to impose wage and price controls o Failed to cut domestic spending to get it put toward war effort War became a deteriorating economic situation Inflation increased o Rise in interest rates Borrowing became more difficult, corporate profits began to  decline Led to an uneasiness among important businessmen about the war Showed in the stock market o Began to fall in 1967 o TET Offensive (1968) led to dramatic fall in the stock market o When LBJ announced he would not run for reelection but would  discuss withdrawal from Vietnam, stock market shot up US cut spending on ballistic missiles, USSR increased spending o Our lead on them began to narrow o This led people to believe that Vietnam was a liability because we 
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This note was uploaded on 04/06/2008 for the course HIST 218 taught by Professor Lieberman during the Fall '08 term at University of Michigan.

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HIS 2-4 - Domestic Results 2 - Domestic Costs of the War...

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