<< 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