War With China and War With Welfare

One of the key elements of engaging the war with China has to do with the course of an economic war.
A shooting war and economic war both have the same goal. To either (1) disarm your enemy so you can bend him to your will (Clauswitz) or (2) to counter your enemy so that you are not disarmed.  This latter course has never worked, it is the reason we lost in Vietnam, we did not go after our enemy but instead merely tried to stop them.
Unfortunately, an all out war with China is probably not in anyone's best interest and we have already lost so much ground that we should not expect, in the foreseeable future, to be able to actually defeat the enemy we supplied through our incompetence (assuming that the incompetence of our leaders can be imputed to the rest of us).
Our war must be fought on several fronts and we must carefully pick these fronts.  This issue is addressed more directly in the Essay, but since this blog exerpts from the essay extensively and since the social welfare state has been brought into the election so heavily, some mention of it here is helpful.
The great President (my opinion) Roosevelt (the second, the first was also great) some form of the modern welfare system.  President Johnson turned it into the massive failure we have to live with today.  Hence, one area which we need to address is how to eliminate the bad parts of social welfare, while keeping some sort of graduated net. 
I will  go out on a limb and say that one part is to accept some casualties.  Those who are kept alive mereby because modern science allows it, this applies to the perhaps only to a very select group of people in a vegetative state, might be a group.  Those who can work and do not because they recieve more benefits by not being part of the mainstream economy are another group.
We should not condemn a person on welfare who gets more insurance coverage, better housing and more money by being on this.  Indeed, this person has shown great resourcefulness.  We should, however, acknowledge that a system which encourages this type of conduct without taking advantage of the resourcefulness is defective. 
War doesn't just mean having tough choices or taking casualties.  It also means having the right moral underpinning to win.  After all, if the enemy is morally superior, perhaps losing would be an option.  For those of you who might think I would encourage allowing our enemy to over-run us, I suggest you read my book, although I'd also suggest you wait for the second edition coming out later this year.
What are other ideas for waging economic war?  They are covered in the first version of the book, will be covered a little more clearly in the second edition and are covered in more detail in the companion essay which is outlined in the beginning of this blog and which will be published later this year with the second edition of World War C aka Trust-how we lost the war with China.