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How was trying to squash a counter culture that was threatening the status quo irrational? There was a lot of money to made fighting foreign wars and putting people in prison, seems like it was done out of perfectly rational fear.
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Power will always crush that which is a threat to it. I'm know the U.S. has done many illegal things in it's "War on Drugs" and that it's done plenty of legal but unethical things. From the point of view of those who wielded power the decision to act the way they did was rational. Legal, ethical and rational are all different things.