Tag: military spending

All through the Vietnam era, we used to hear that war was terrible in so many other ways, but good for the economy. It put people to work, it allowed companies facing hardship to find customers, etc. etc.

This was always a misleading argument, as war spending created far fewer jobs than many other categories.

It seems today’s market is much more aware of the potential economic devastation of war. Consider this bit of news:

With the possibility of military action against Syria easing, investors sent the markets soaring to a sharply higher close with the Dow leaping 127 points to 15,191. Nasdaq climbed 22 points to 3729.

Incidentally, money spent on energy efficiency and going green has a much higher rate of return for the economy. Green energy spending creates more jobs, consumer spending, and long-term consumer savings that frees up cash for more spending, while war drives us deeper into debt.