Military Keynesianism is not a bugbear made up by libertarians — in fact, it is widely hailed as a good idea by the likes of Bill Kristol and Reagan advisor/Harvard professor Martin Feldstein. Chalmers Johnson, the author of the Ron Paul-recommended book Blowback, writes on the subject:
This is military Keynesianism — the determination to maintain a permanent war economy and to treat military output as an ordinary economic product, even though it makes no contribution to either production or consumption. This ideology goes back to the first years of the cold war.
It’s a very clever plan, for “Militarism is the one great glamorous public-works project upon which a variety of elements in the community can be brought into agreement.” Conservatives who would never support welfare spending on the poor will happily countenance pouring billions — even trillions — into militarism. The left may object a little at first, but the right spokesman will bring them into line. And hey, it will stimulate the economy to boot! (Wrong)Published in