Military Keynesianism - Forms of Military Keynesianism

Forms of Military Keynesianism

For the purpose of scientific clarity, the following forms of military Keynesianism may be differentiated:

First, there is the differentiation between the use of military spending as 'pump primer', and efforts to achieve long term multiplier effects by the given spending. A government may opt to approve the purchases of fighter planes, warships or other military commodities so as to weather a recession. Alternatively, it may opt to approve the purchase of fighter planes, warships or other military commodities throughout all the years of a given business cycle. Since the construction of large armament systems requires extensive planning and research, capitalist states generally prefer to rely on arms' purchases or other military allocations for longer-term macro-economic policymaking and regulation.

A second differentiation that needs to be made is between primary and secondary forms of military Keynesianism. In both cases, the state uses the multiplier mechanism in order to stimulate aggregate demand in society. But the primary form of military Keynesianism refers to a situation where the state uses its military allocations as the principal means to drive the business cycle. In case of a secondary form of military Keynesianism, the given allocations contribute towards generating additional demand, but not to the extent that the economy is fully, or primarily, driven by the military allocations.

The third differentiation starts from the observation that modern capitalist economies do not function as closed systems but rely on foreign trade and exports as outlets for the sale of a part of their surplus. This general observationapplies to the surplus generated in the military sector as well. As the vast amount of data regarding state promotion of arms' exports do confirm, - capitalist states actively try to ensure that their armament corporations gain access to import orders from foreign states, and they do so amongst others in order to generate multiplier effects. Hence, there is a need to also differentiate between the two forms of domestic and 'externalized' military Keynesianism. (3)

Read more about this topic:  Military Keynesianism

Famous quotes containing the words forms of, forms and/or military:

    All forms of government symbolize an immortal government, common to all dynasties and independent of numbers, perfect where two men exist, perfect where there is only one man.
    Ralph Waldo Emerson (1803–1882)

    Your body must become familiar with its death—in all its possible forms and degrees—as a self-evident, imminent, and emotionally neutral step on the way towards the goal you have found worthy of your life.
    Dag Hammarskjöld (1905–1961)

    The transformation of the impossible into reality is always the mark of a demonic will. The only way to recognize a military genius is by the fact that, during the war, he will mock the rules of warfare and will employ creative improvisation instead of tested methods and he will do so at the right moment.
    Stefan Zweig (18811942)