"Our country is now geared to an arms economy bred in an artificially induced psychosis of war hysteria and an incessant propaganda of fear"

This quote by Douglas MacArthur talks to the state of the United States throughout his time. He is referring to the reality that the United States economy is greatly reliant on the production of weapons and military devices, which is a result of the worry and hysteria that has been produced by the federal government through propaganda. This worry is not based upon any real risk, however is instead artificially caused by the government in order to keep a state of war preparedness. This has caused the United States to become greatly dependent on the production of weapons and military equipment, which has actually had a harmful impact on the economy and individuals of the United States. MacArthur is alerting of the risks of this reliance on an arms economy and the need to break away from this cycle of worry and hysteria.