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Old 05-19-08, 05:34 PM   #33 (permalink)
Scucca
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Thread Starter Re: The New Mercantilists?

Quote:
Originally Posted by gunner View Post
...so i wouldn't say the defense industry has robbed the civilian economy of that kind of resource.
Its a basic application of opportunity costs. Resources used in the military sector are resources that could have been used in the civilian sector.

Quote:
What you consistently ignore is defense is not about economics, its about "DEFENSE".
And that would be a reference to economics: i.e. national defence is a public good. However, once we refer to defence economics we are confronted with an understanding that this is only one aspect. Arms production has direct economic costs: from Keynesian analysis (with the military sector less effective at demand management than civilian expenditures) to endogenous growth theory (with economic welfare losses caused by stunted technical progress)

Quote:
Did you misunderstand were i state my employer is using its workforce for many civilian contracts?
There are very few military-specific firms (which was further encouraged by the 'peace dividend' blip). That does not impinge on my argument
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