The Economic Puzzle in Military Spending

The Case of the United States
By Geneviève Schméder

English

The first part of the paper presents the two main approaches, liberal and Keynesian, to the question of whether, in peacetime, military spending is good or bad for the economy, an issue on which the multiplicity and complexity of the relationship between defense and growth prevents an unequivocal answer. The second part examines the case of the United States where, for decades, the two parties sharing power have made military Keynesianism a cornerstone of public policy as well as the national economy. This policy, however, cannot be considered a sustainable one.
JEL Codes: E32, E62, H56, N

Keywords

  • Defense
  • economy
  • military Keynesianism
  • public expenditures
  • Unites States
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