Re: Israel’s Roaring Economy (correct link)
On Jun 22, 2007, at 10:47 AM, Jonathan Nitzan wrote:
The relationship between U.S. military spending as a share of GDP and U.S. GDP growth is shown here: http://www.tikkun.org/magazine/specials/image0608big/cwfig1largehtml
Maybe this is a short-term observation - an occupational hazard of
covering Wall Street - but the relation seems to have broken down
after 1990. The military share fell during the Clinton years and
growth rose; the reverse has been true in the Bush years. I wonder if
this has anything to do with the composition of military spending,
which is decreasingly about mass-produced industrial goods (which
presumably have a higher multiplier) and increasingly about
specialized high-tech gear, R&D, and purchased services (with
presumably lower multipliers).
Doug