Sunday, November 8, 2009

Military Spending comes in last in job creation Right Behind Tax Cuts. Education is #1 followed by Health Care and Infrastructure Rebuilding

McCamy Taylor's Journal - Books, Not Bombs: How Military Spending Hurts the Economy and Education Spending Helps: "In their 2007 paper, The U.S. Employment Effects of Military and Domestic Spending Priorities, Robert Pollin and Heidi Garrett-Peltier study the effects of war spending versus other types of federal spending on the economy, particularly on jobs. They compare spending on education, health care, mass transit, home improvement construction, tax cuts and the military to see how they rate in terms of job production and overall economic benefit using the input-output method of Leontief. Their conclusions may surprise you.

Of the six types of spending considered, only tax cuts do a worse job of creating jobs than military spending. Education spending is the best bet for your money if you want to increase the number of people making a real living wage. Spend more on health care, mass transit and home improvement and you will create jobs that do not pay as well as in the education sector----but they still generate more money for the economy than the relatively small number of high paying defense jobs and the service industry minimum wage jobs that you get with tax cuts.

Here is the study cited:

Quotes in support of these ideas include Thomas Paine and Alan Greenspan

Tom Paine

Speaking about patriots and military spending, once upon a time, back when the Founders of Our Country were battling King George and Great Britain, they understood the real use of war spending. Rather than protecting the people, it was meant to enslave them. In The Rights of Man Thomas Paine asks why the nations of Europe did not follow through with a proposal to end war made by Henry IV of France. He concludes:

"Whatever is the cause of taxes to a Nation, becomes also the means of revenue to Government. Every war terminates with an addition of taxes, and consequently with an addition of revenue; and in any event of war, in the manner they are now commenced and concluded, the power and interest of Governments are increased. War, therefore, from its productiveness, as it easily furnishes the pretence of necessity for taxes and appointments to places and offices, becomes a principal part of the system of old Governments; and to establish any mode to abolish war, however advantageous it might be to Nations, would be to take from such Government the most lucrative of its branches. The frivolous matters upon which war is made, show the disposition and avidity of Governments to uphold the system of war, and betray the motives upon which they act."

Alan Greenspan

"Alan Greenspan understands the importance of education spending to help the economy grow. Here is his speech to the Federal Reserve Board in 2000.

Certainly, if we are to remain preeminent in transforming knowledge into economic value, the U.S. system of higher education must remain the world's leader in generating scientific and technological breakthroughs and in preparing workers to meet the evolving demands for skilled labor. With two-thirds of our high school graduates now enrolling in college and an increasing proportion of adult workers seeking opportunities for retooling, our institutions of higher learning increasingly bear an important responsibility for ensuring that our society is prepared for the demands of rapid economic change. Equally critical to our investment in human capital is the quality of education in our elementary and secondary schools. As you know, the results of international comparisons of student achievement in mathematics and science, which indicated that performance of U.S. twelfth-grade students fell short of their peers in other countries, heightened the debate about the quality of education below the college level. To be sure, substantial reforms in math and science education have been under way for some time, and I am encouraged that policymakers, educators, and the business community recognize the significant contribution that a stronger elementary and secondary education system will make in boosting the potential productivity of new generations of workers. I hope that we will see that the efforts to date have paid off in raising the achievement of U.S. students when the results of the 1998-99 international comparisons for eighth graders are published."

1 comment:

Hemp 4 Life said...

VFP 001
Anti War Rally Portland Maine Nov-06-2009
Herb Hoffman and guests.

3 videos on a play list. check it out