So this report that came out a few days ago from The Center for Economic and Policy Research where the authors looked into how our massive defense spending binge will likely affect the macro economy in the years to come (long story short, ceteris paribus---you don't wanna be an auto industry or construction worker in the near future).
The authors go so far as to state:
"It is often believed that wars and military spending increases are good for the economy," said Baker. "In fact, most economic models show that military spending diverts resources from productive uses, such as consumption and investment, and ultimately slows economic growth and reduces employment."
Good old CEPR, guess I'll have to go subscribe to another mailing list so I don't miss tidbits such as this.
And that's my long overdue post for the week from about a month ago, mas despues de la ultimo final exam wednesday-ish?
1 comment:
I think we could make a whole blog just responding to Baker. But he certainly provides food for thought. I was about to put something from him up here too. Now I'm ambivalent :)
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