The United Stated had declared war on Vietnam with the notion as the world’s superpower following the country’s exploits over Axis power during the Second World War. The outcome of the conflict was a humiliating defeat on its part, a high number of casualties and a nation deeply divided with the rulers uncertain of the foreign policy that lay ahead. The war in Vietnam was the country’s longest and most devastating war based on the outcome. It was the only war which the US evidently lost, and it had far-reaching effects on many facets of American life including the economy, the social fabric of American society, political culture and US foreign policy. The Vietnam War had a severe impact on the United States economy due to the vast amount of resources used in the course of the war. The nation had used more than 165 billion dollars, but the actual cost of the war was attributed to the impact it had on the economy. Between 1962 and 1965, there was low inflation in the United States and nearly full employment of its citizens. After the assassination of President John F. Kennedy, the administrative role was succeeded by Lyndon B. Johnson who declared “War on Poverty” while still advocating for the continuing war in Vietnam during his tenure (Moss, 101). Nevertheless, his decision to offer financial support to both “butter and guns,” referring to the high society and a hot war that resulted in a continuous increase in taxes and a spread of inflation which increased throughout the mid 1970’s. It was not until several years later that he partook in the action of charging inhabitants with a 10 percent income tax. The latter was considered as a backward step in altering the situation. Martin Luther King Jr referred to Johnson’s administration as a tragic situation for the country (77). Additionally, the huge amount of resources spent during the war led to an imbalance of trade which posed a threat to the nation’s gold reserves in 1968. The increased inflation coupled with the increased food and oil prices led to increasing during 1973. [Show Less]