Edling, “When Johnny Comes Marching Home . . . from the Bank”
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When Johnny Comes Marching Home . . . from the Bank
War and public finance in America, from the U.S.-Mexico War to the present
When Polk was elected president, what is now the mainland United States was divided between five sovereign states. Three were republics: the United States, Mexico, and Texas. Two were monarchies: Great Britain and Russia. In addition to Europeans and their descendants, many stateless Indian nations also resided on this territory. Within three short years, the American republic had acquired title to almost all of its present day North American possessions, a process completed by the Gadsden Purchase in 1853 and the acquisition of Alaska in 1867. In a process where sovereign states disappeared (Texas), contracted (Mexico), or gave up their colonial possessions (Russia), and stateless peoples were dispossessed and killed off (Native Americans), the United States picked up the spoils.
There is a romantic notion that this American expansion was achieved by settlers unaided by government—the rugged frontiersmen of the mythic West. In reality, however, the United States expanded through state action: annexation in the case of Texas; diplomatic settlement with Britain in the case of Oregon; war with Mexico in the case of California and the Southwest; purchase from Russia in the case of Alaska. Against the Indian nations, the full range of state tools was employed: war, diplomacy, and land purchases, which together amounted to a policy of ethnic cleansing. In the competition with states and stateless peoples in North America, the United States won because it could bring to bear a stronger and more efficient state. Although this American state acted in many different ways, underlying them all was the ability to raise money to finance government action. From Ancient Greece to our own times, money has been the supreme sinew of power.
When Polk was elected president, what is now the mainland United States was divided between five sovereign states. Three were republics: the United States, Mexico, and Texas. Two were monarchies: Great Britain and Russia. In addition to Europeans and their descendants, many stateless Indian nations also resided on this territory. Within three short years, the American republic had acquired title to almost all of its present day North American possessions, a process completed by the Gadsden Purchase in 1853 and the acquisition of Alaska in 1867. In a process where sovereign states disappeared (Texas), contracted (Mexico), or gave up their colonial possessions (Russia), and stateless peoples were dispossessed and killed off (Native Americans), the United States picked up the spoils.
There is a romantic notion that this American expansion was achieved by settlers unaided by government—the rugged frontiersmen of the mythic West. In reality, however, the United States expanded through state action: annexation in the case of Texas; diplomatic settlement with Britain in the case of Oregon; war with Mexico in the case of California and the Southwest; purchase from Russia in the case of Alaska. Against the Indian nations, the full range of state tools was employed: war, diplomacy, and land purchases, which together amounted to a policy of ethnic cleansing. In the competition with states and stateless peoples in North America, the United States won because it could bring to bear a stronger and more efficient state. Although this American state acted in many different ways, underlying them all was the ability to raise money to finance government action. From Ancient Greece to our own times, money has been the supreme sinew of power.
[This is just a snippet. Read the whole article at Common-Place, then come back here to comment below.]

Max, any comment on the recent developments in public finance, such as:
There has quite a bit of talk over here about solving our financial crisis the “Swedish way.”
Comment by Jeff Pasley — October 8, 2008 @ 11:09 pm
U suck
Comment by Bob McHennington — April 24, 2010 @ 2:09 pm