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 supplied as examples of such policies are Germany in the 1930s and the United States in the 1980s and 2000s, although whether these assessments are accurate is the subject of vigorous debate.

Murray Newton Rothbard refers to the US implementation of the military Keynesian State as "Welfare-Warfare" State.

Noam Chomsky refers to the current US implementation of Military Keynesianism as "The Pentagon System".

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 good 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 from the civilian workforce. In the United States, enlistment is touted as offering direct opportunities for education or skill acquisition.

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