FEE.org caught this revealing piece from the Washington Post: “Across America, War means Jobs”In this corner of a critical presidential-election battleground state, the economy is surging with the urgency of a boom. But it wasn’t President Bush’s tax cuts, Federal Reserve interest rate policies or even a general economic turnaround that did the trick. It was war.
The frenetic activity is repeated all over the country. New kilns in California bake ceramic body-armor plates. Apparel plants in Arkansas, Alabama, Florida and Puerto Rico struggle to keep up with uniform orders. Once-idle textile mills in South Carolina spin rugged camouflage fabric. Army depots operate 24/7 to repair and rebuild the wreckage of war in time to ship it back with the next troop deployment.
In the first three months of this year, defense work accounted for nearly 16 percent of the nation’s economic growth, according to the Commerce Department. Military spending leaped 15.1 percent to an annualized rate of $537.4 billion, up from $463.3 billion in the comparable period of 2003, when Bush declared major combat operations in Iraq over. ...
It is impossible to know how many of the 708,000 jobs created in the past three months are defense-related, since the Labor Department does not track defense contractor employment. But anecdotal evidence suggests the contribution is significant....
In inflation-adjusted terms, the war’s cost will surpass the United States’ $199 billion share of World War I sometime next year. Coming on top of three major tax cuts, that spending will drive the federal budget deficit to more than $400 billion this year. That borrowing will eventually have to be repaid in higher taxes or reduced government services and benefits.
Economists have long argued that war is an inefficient use of government revenue. A dollar spent on a highway not only employs workers but also creates a lasting, broadly shared benefit for the economy. A dollar spent on military equipment is soon lost to enemy attack or the rapid wear of war. If it bought a bomb or bullet, it simply explodes.
The families of thousands of National Guard members and reservists have been dealt severe financial blows by the extended deployments of breadwinners....
