Well, the classic Keynesian view would be that if the economy is not operating at full capacity and there is involuntary unemployment, and you can borrow the money for it, then Pentagon spending would create jobs.
The point here is that in the current political context, additional federal borrowing to pay for additional Pentagon spending is off the table, so additional Pentagon spending would have to come from the domestic economy in terms of budget cuts or higher taxes. On Tue, Oct 8, 2013 at 1:43 PM, <[email protected]> wrote: > "Robert Naiman" <[email protected]>* wrote: > > * > > Ask a Keynesian: With Borrowing Capped, Won't More Pentagon Spending > Destroy Jobs? > > > http://petitions.moveon.org/sign/ask-a-keynesian-with?source=c.url&r_by=1135580<http://petitions.moveon.org/sign/ask-a-keynesian-with?source=c.url&r_by=1135580> > > Pentagon spending destroys jobs in the first place regardless of whether > borrowing is capped. > > -- > Ron > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > > -- Robert Naiman Policy Director Just Foreign Policy www.justforeignpolicy.org [email protected]
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