Aug 30
"Magnificent! Compared to war all other forms of human endeavor shrink to insignificance.
God help me, I do love it so!"
- General George Patton Jr
25% of the anemic 2nd quarter growth of 1.4% was caused by defense procurement or consumption (i.e. war):
Alas, even the GWOT has to end sometime. Or does it? Will we have a permanent military-war-on-terror complex, like we have left over from the Cold War? That seems likely.
August 30th, 2010 at 1:17 pm
We could go back and review the angst of 1992 with the end of the Cold War, the “peace dividend”, “defense conversion”, and other political struggles to avoid the loss of the large contribution of Defense to GDP. Only a brief problem as the establishment concocted new threats that required the best military equipment that money could buy. Fear of foreigners sells well in American politics, and the GWOT is likely to continue or be replaced by some other fear. But as Andy Grove says, “Only the paranoid survive.”
August 30th, 2010 at 1:29 pm
I don’t mind a strong military, especially one with good ethics like ours.
August 30th, 2010 at 2:10 pm
There is a word, beginning with P for those who believe that everyone is out to get them: Perceptive.
August 31st, 2010 at 5:03 am
Although Defense spending adds to GDP, it does not have the same growth effect as commercial spending because military work does not have as much potential for spinning off new advances and investment. Money for ICBMs goes into a hole in the ground. No spinoff comes from firing artillery ammunition.
August 31st, 2010 at 7:30 am
I agree, sort of. The money spent on defense returns better than money spent buying votes, which is what… 4 or 5 times as much?