2009/07/01 by Robert Pollin, Heidi Garrett-Peltier · 1 voice
Economics, Econometrics and Finance · #Fiscal Policy and Economic Growth #Defense, Military, and Policy Studies
paper · doi:10.2190/hs.39.3.b
openalex publication_date 2009/07/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
This study focuses on the employment effects of military spending versus alternative domestic spending priorities. The authors begin by introducing the basic input-output modeling technique for considering issues such as these in a systematic way. They then present some simple alternative spending scenarios-namely, devoting 1 billion to the military versus the same amount of money spent for five alternatives: tax cuts that produce increased levels of personal consumption; health care; education; mass transit; and construction targeted at home weatherization and infrastructure repair. The first conclusion in assessing such relative employment effects is straightforward: 1 billion spent on personal consumption, health care, education, mass transit, and construction for home weatherization/infrastructure will all create more jobs in the U.S. economy than would the same 1 billion spent on the military. The authors then examine the pay level of jobs created through these alternative spending priorities and assess the overall welfare effects of the alternative employment outcomes. Combining these alternative domestic spending categories in an effective way can also generate a higher level of compensation for working people in the United States and a better average quality ofjobs.