The military is our secret Keynesian weapon. William Kristol was the first to say that if we needed to spend stimulus money, it should be most quickly and efficiently spent through the Pentagon. It is often overlooked how much we depend on the military to provide jobs, vocational training and government subsidies to industry.
...But it is the way we’ve chosen since the Reagan build-up began 30 years ago. Like the massive overhaul in our entitlement programs that will be forced by the deficit spending on financial system bailout, the loss of military Keynesianism will cause great disruption within the American economy.
Barry Ritholtz, 11.30
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