Sunday, February 8, 2009

New call for military spending in Obama's stimulus package

In an article in the Washington Post, Tom Donnelly and Gary Schmitt, both from the American Enterprise Institute, call for inclusion of $20-25 billion in military spending in Obama's stimulus package. They say it would revive the economy and do so quickly. That's mostly true, and has been done by US administrations vigorously since World War II. The main problem is that it builds weapons as opposed to civilian goods and services. But politically, it's easier to enact defense spending than civilian expenditures, since the population can be scared and convinced there is a need for the latest jet fighter or some other weapon system. When the government spends on the civilian/social sectors, then the population gets involved in politics (discussing things like, where and on what should our community spend the money?), and that directly attacks the establishment's prerogatives and privileged position (since for instance, people will call for income redistribution instead of spending on futuristic military projects that have no value in increasing people's quality of life).
It will be important to keep an eye on Obama's spending policies in the next few months. The current stimulus package involves very little military spending, but if another stimulus package is needed, then it could well include much defense spending (like JFK did in the early 1960s).

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