[james duesenberry] t in965, the real aggregate demand was sing [james duesenberry] t in965, it was continuingo rise into 1966. tthe ringed the raw materials ices,zation, and the decline in unemployment accompanied by labor shortages. many economists felt a tax increase would take money spending would drop, inationary pressures retreat. but ashe tax measure was debated, the white house would unleash new inflationary forces. johnson di't want to hear warnings about inflation. lyndon johnson had a dreamash neof a great society.es. this adminisation today, here and now, declares unconditional war on poverty in america. lbj began to build his great society. but the big budget item wasn't the war on poverty. it was the war in vietnam. the defense department said it spent a billion dollars a month. as we found out later, it was costing more. between two and three times more. weere not fully aware, not even as economic advisors in washington, let alone the outside consultants, how much vietnam was going to cost. we were taken unawares for several months. but by december of 1965, still early in the ga