Home > Military Keynesianism
Military Keynesianism is a government economic policy in which the government devotes large amounts of spending to the military in an effort to increase economic growth. This is a specific variation on Keynesian economics, developed by English economist John Maynard Keynes. Instances commonly offered as examples of such policies are Germany in the 1930s and the United States in the 1980s, although whether these assessments are accurate is the subject of vigorous debate.1 Economic Effects
The economic effects advanced by supporters of military Keynesianism can be broken down into four areas, two on the demand side and two on the supply side.
On the demand side, increased military demand for goods and services is generated directly by government spending. Secondly, this direct spending induces a multiplier effect of general consumer spending. These two effects are directly in line with general Keynesian economic doctrine.
On the supply side, the maintenance of a standing army removes many workers, usually young males with less skills and education, from the civilian workforce. This demographic group ordinarily faces an especially high level of unemployment; some argue that drawing them into military service helps prevent crime or gang activity. In the United States, enlistment is touted as offering direct opportunities for education or skill acquisition, possibly to target this demographic.
In this sense, the military might act as an employer of last resort – it is an employment opportunity which tends to hire from the bottom (least qualified) part of the workforce, provides a decent standard of livingThe Standard of living refers to the quality and quantity of goods and services available to people. It is generally measured by real (i. inflation adjusted) income per person, although sometimes other measures may be used; examples are access to certain, serves a useful social purpose, and offers jobs regardless of the state of the general economy.
Also on the supply side, it is often argued that military spending on research and developmentThe phrase research and development (also R and D or R&D has a special commercial significance apart from its conventional coupling of research and technological development. In the context of commerce, "research and development" normally refers to future (R&D) increases the productivityIn economics, Productivity is the amount of output created (in terms of goods produced or services rendered) produced per unit input of used. For instance, labor productivity is typically measured as output per worker or output per labor-hour. With respec of the civilian sector by generating new infrastructureInfrastructure is the set of interconnected structural elements that provide the framework for supporting the entire structure. The term is often used very abstractly. For instance, software engineering tools are sometimes described as part of the infrast and advanced technologyTechnology ( Gr. tau;εχνολογια < τεχνη "craftsmanship" + λογος "word, reckoning" + the suffix ια) has more than one definition.. Frequently cited examples of technology developed partly or wholly through military funding but later applied in civilian settings include radarThis article is about the device. For the fictional character in M A S H see Corporal Walter (Radar) O'Reilly. antenna (approximately 40m (130ft) in diameter) rotates on a track to observe activities near the horizon. Radar is an acronym for ra dio d etec, nuclear power, and the internetThis article is about the Internet the extensive, worldwide computer network available to the public. An internet is a more general term for a set of interconnected computer networks that are connected by internetworking''. WWW information network structu.
