I am resending this; didn't seem to make it the first time... Quoting from Joan Robinson's "Latter Datter Capitalism" New Left Review July August 1962, Paul Mattick wrote in response to an economist's question of where new permanent sources of demand could be found: Although the answer to the query should be obvious, with two thirds of the world population near or at starvation, and with the underdeveloped countries urgent need for all kinds of means of production to overcome their miserable conditions, the 'obvious' is not the answer, not even for alleviating misery in the developed nations where tens of millions of people cannot satisfy their most immediate needs. What prosperity there has been, has been largely a by-product of the Cold War, which 'has not proved that recessions can be avoided except by armaments expenditures, and since to justify armaments international tension has to be kept up, it appears that the cure is a good deal worse than the disease.' Marx and Keynes: the limits of the mixed economy. Boston: Porter Sargent, 1969:149. By the way, at a local bookstore I was looking through a disturbing book on US arms exports by Keller Arm in Arm. Military keynesianism seems to be far from dead. Rakesh Bhandari
