4/29/08

Military Keynesianism maintains permanent war economy

The ideology of Military Keynesianism is the determination to maintain a permanent war economy and to treat military output as an ordinary economic product, even though it makes no contribution to either production or consumption.

During the late 1940s, the U.S. was haunted by economic anxieties. The Great Depression of the 1930s had been overcome only by the war production boom of the second World War.

National Security Council Report 68 (NSC-68) asserted: "One of the most significant lessons of our World War II experience was that the American economy, when it operates at a level approaching full efficiency, can provide enormous resources for purposes other than civilian consumption while simultaneously providing a high standard of living."

With this understanding, U.S. strategists began to build up a massive munitions industry, both to counter the military might of the Soviet Union (which they consistently overstated) and also to maintain full employment, as well as ward off a possible return of the depression. This led to what President Eisenhower warned against in his farewell address of 6 February 1961: "The conjunction of an immense military establishment and a large arms industry is new in the American experience" -- the military-industrial complex.

The U.S. remains to this day the World's top military spender.

[Excerpt of an article by Chalmers Johnson, Le Monde]

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