Economics of the War Economy

Economics of the War Economy - EconomicsoftheWarEconomy...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics of the War Economy Paul Mattick (1959) Following Keynesian thought, war has been recognized as necessary for the proper functioning of the economy. Inflation and war are the only means to attain full use of productive capacity “Is the association between war and full employment an accident or a necessity?” o Government expenditure could lead to full employment through other means to create wealth, however only under warfare has there been full use of productive capacities and full employment. o The military wealth of the USA exceeds $124 billion, excluding many assets. o Rising cost of peace: “Spending for defense loses it sinister implications” Given that only actual warfare full employment ad use of productive capacities was achieved, it is difficult to oppose this: o For organized labor =jobs, hence more bargaining power. o For big corporations: Market demanded is not affected, as opposed to taxation for example. Deficit financing is resorted to by the government.- Buying goods and
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/28/2011 for the course POLI 243 taught by Professor Markbrawley during the Spring '09 term at McGill.

Page1 / 3

Economics of the War Economy - EconomicsoftheWarEconomy...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online