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The Permanent War Economy and Deindustrialization

(Image: Detroit, Michigan, the former centre of America’s auto industry. Source)

Politicians of all political stripes like to dress inflated military budgets, and the wicked arms deals that frequently accompany them, in terms of “job creation.” Former U.S. Defense Secretary Leon Panetta, arguing against any reduction in military funding, claimed that any decrease “would result in job cuts that would add potentially 1 (percentage point) to the national unemployment rate.”[1] Here in Canada, both Stephen Harper and his Liberal counterpart Justin Trudeau have justified the $15 billion arms deal with Saudi Arabia, the largest such deal in Canadian history, as a means of creating jobs. “The fact is that there are jobs in London relying on this” deal, Trudeau said [2].

A closer examination will reveal something different. By not producing a life-serving product, i.e., an article used for either consumption or for further production, military spending is not only the worst of available choices for job creation, it contributes to industrial and infrastructure decay. (more…)