Military Spending and Growth

JayHecht at aol.com JayHecht at aol.com
Thu Apr 22 18:01:27 PDT 1999


In a message dated 4/22/99 4:41:48 PM Central Daylight Time, GN842 at CNSVAX.Albany.Edu writes:

<< To the

extent that miltary spending boosts aggregate income in

the US it is not, in fact, a drag, except to the extent

that there is a moral opportunity cost in choosing

military Keynesianism over moral or redstributive

Keynesianism. But in terms of eocnomic growth and

output either kind of Keynesianism will get your

further than unemployment. >>

Tanks, arms and the such do not re-circulate in the economy (they become a stock of goods, much like unsold inventory) and thus pose a real problem for capitalist accumulation. Unproductive expenditures (though necessary) must be understood in the broader context of production (e.g. for profit, circulation, social control). Shaikh and Tonak do a pretty good job addressing this issue.

Jason



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