[james duesenberry] but in 1965, the real aggregate demand was rising at an annual rate of nearly 8%.t was continuing to rise into 1966. that produced the high-capacity utilization, the ring raw materials prices and the decline in unemployment accompanied by labor shortages. many economists felt a tax increase would take money from consumers and business. spending would drop, inflationary pressures retreat. but as the tax measure was debated, the white house would unleash new inflationary forces. johnson didn't want to hear warnings about inflation. lyndon johnson had a dream of a great society. this administration 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. we were not fully aware, not even as economic advisors in washington, let alone the outside consultants, how much vietnam was going to cost. we were t