U.S. Shifting to Military Economy
Tuesday, August 04, 2009
A growing trend in the sale of military goods versus civilian manufacturing has left some observers wondering if the United States is headed towards a military-based economy. Since the beginning of this decade, military durable goods have steadily been trending upward, while non-defense goods have been going down, according to a chart compiled by Haver Analytics and The New York Times. In addition, non-industrial production has fallen by 19% over the past nine years—but military manufacturing has skyrocketed 123% since 2000. Overall, defense spending accounts for about 8% of all durable goods sold in the U.S. economy, up from 3% in 2000.
Even with the election of President Barack Obama and the new administration’s shift in defense-spending priorities, the Pentagon’s budget is not going down. The Defense Department budget for this year is $651 billion (which does not include the roughly $150 billion cost of the Iraq and Afghanistan wars), representing an 11% jump from last year’s total of $583 billion.
-Noel Brinkerhoff
Is America Building a Purely Military Economy? (by Daniel Tencer, Raw Story)
Durable Goods Shipments (Haver Analytics/New York Times)
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