Big Spending on War Has Little Effect on GDP

January 24, 2012

According to Military Spending and Economic Growth in South Asia: A Panel Data Analysis as reported by Harvard Business Review on November 30th, 2011:

A 1% increase in military spending increases real GDP by only 0.04%, according to a study of five South Asian countries by Albert Wijeweera and Matthew J. Webb of the Petroleum Institute in the United Arab Emirates. Their findings suggest that the substantial amount of public money currently directed toward military purposes in these countries has just a negligible impact on economic growth.

Well, duh.

That’s a reason why the United States should probably stop spending $660+ billion dollars on our military.

And that, by the way, is NOT counting the over $56 billion in the so-called “black budget”, which receives no Congressional oversight whatsoever.

War, what is it good for?