Summer’s doctrine = Powell doctrine

December 24, 2010

One of the better analogies in recent memory: Larry Summers’
economic doctrine (which has been the USG’s strategy since the
start of the financial crisis) is the financial/monetary equivalent
of the Powell doctrine. The former calls for the govt to massively
increase expenditures to fight off a massive cut back in private
spending (i.e.TARP, stimulus, bush tax cut deal, QE1/2 etc…)
while the latter call for overwhelming force against opposing
armies (i.e. the gulf war, Bosnia, network centric warfare theory,
“shock and awe”, Baghdad “thunder run” etc…). It’s interesting to
note that while the latter has been somewhat discredited given it’s
ineffectiveness in the second Iraq war (i.e only COIN could bring
peace to the post war; notwithstanding the fact that the Powell
doctrine successfully destroyed the incumbent regime) the former
has yet to reach a point in time where it usefulness can be
accurately assessed.

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