THE U.S. EMPLOYMENT EFFECTS OF MILITARY AND DOMESTIC SPENDING PRIORITIES

This study focuses on the employment effects of military spending versus alternative domestic spending priorities. The authors begin by introducing the basic input-output modeling technique for considering issues such as these in a systematic way. They then present some simple alternative spending s...

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Bibliographic Details
Published in:International journal of health services 2009-01, Vol.39 (3), p.443-460
Main Authors: Pollin, Robert, Garrett-Peltier, Heidi
Format: Article
Language:English
Subjects:
Consumption
Costs and Cost Analysis
Delivery of Health Care - economics
Education - economics
Employment
Employment - economics
Expenditure
Facility Design and Construction - economics
Government Programs - economics
Health care
Humans
Infrastructure
Job Production in the Social Sector
Military
Military Personnel - statistics & numerical data
Models, Econometric
Politics
Priorities
Public expenditure
Taxation
Transportation - economics
U.S.A
United States
Working conditions
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Summary:This study focuses on the employment effects of military spending versus alternative domestic spending priorities. The authors begin by introducing the basic input-output modeling technique for considering issues such as these in a systematic way. They then present some simple alternative spending scenarios—namely, devoting $1 billion to the military versus the same amount of money spent for five alternatives: tax cuts that produce increased levels of personal consumption; health care; education; mass transit; and construction targeted at home weatherization and infrastructure repair. The first conclusion in assessing such relative employment effects is straightforward: $1 billion spent on personal consumption, health care, education, mass transit, and construction for home weatherization/infrastructure will all create more jobs in the U.S. economy than would the same $1 billion spent on the military. The authors then examine the pay level of jobs created through these alternative spending priorities and assess the overall welfare effects of the alternative employment outcomes. Combining these alternative domestic spending categories in an effective way can also generate a higher level of compensation for working people in the United States and a better average quality of jobs.
ISSN:0020-7314
1541-4469
DOI:10.2190/HS.39.3.b