The Economics of Military Spending

1 Introduction

What is the driving force of capitalism – consumption or profit? If it is consumption, then a shotgun or a rifle is just like any other private good, used for personal security or ‘pleasure’ (e.g. hunting), while a fighter jet or a nuclear missile is a ‘public good’, providing national security. If the driving force of capitalism is profit, then arms are again not so different from other private goods, but perhaps with one crucial advantage: they may be more functional than civilian goods in that they can reinforce political and economic hegemony and are either rapidly used or rendered obsolete, which guarantees endless demand, thereby helping to absorb surplus. This book adopts the latter approach, in which the driving force ...