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Submitted by Robert Naiman on 16 August 2011 - 3:56pm
For the first time in a decade, significant cuts in projected military spending are on the table. If the "Super Congress" doesn't reach a deal on $1.2 trillion in debt reduction over the next ten years by Thanksgiving, $1.2 trillion in automatic cuts will be triggered, half of which must come from the military; and if the Super Congress does reach a deal, the prospects are good that cuts in projected military spending will be a significant part of the story (you can add your voice for cuts in projected military spending here.)
Obviously, however, the prospect of significant military cuts has well-heeled opponents. The military-industrial-Congressional-lobbyist-think tank-corporate media complex is not just going to roll over and play dead. In the next three months, we can expect a steady stream of pro-military spending propaganda. Expect to hear a lot about China, Iran, North Korea, and "global terrorism" as the beneficiaries of the military-industrial complex try to justify why we must continue to spend much more on the military than we did while opposing the Soviet Union during the Cold War.
But another argument against cuts to projected military spending is sure to rear its ugly head: we shouldn't cut military spending, because that would cost American jobs.
In the current political context, this "jobs" argument is 100% nonsense. Here's why.
The (first-order) Keynesian economics story for government spending to boost employment has three basic elements:
1. The economy is not always at full employment. Sometimes, there are a significant number of people who are "involuntarily unemployed" - they would like to work for the prevailing wage but cannot find a job.