Welcome to Real Economy

HOME

New Article:
THE MIDWEST:  Hole in the Donut

New Article:
EMPIRE TRAP

New Article:
MILITARY BUILDUP (PDF File)

New Article:
IMMIGRATION

New Article:
JESUS AND EMPIRE

Core Concepts:
NONPRODUCTIVE  GOVERNMENT

Core Concepts:
EVERY OTHER
GENERATION

Graph:
CRIME AND MILITARY SPENDING

Graph:
REAGANOMICS

Graph:
LONG TERM TREND

Graph:
FEDERAL SPENDING

ABOUT THE AUTHOR

ORDER
BOOKS AND TAPES


This graph, of per capita federal spending by the twenty-two states with the twenty-five largest metro areas, is ranked ordered by military spending first. Above the white line across the middle of the graph is the state's military spending and below the white line is the state's nonmilitary other federal spending. Notice how the military allocation is very unequal while the nonmilitary allocation is fairly equal across all the states. The black bars are the average military spending on top and the average nonmilitary spending on the bottom. This graph, from 1984 in the last decade of the Cold War, shows how 80% of the inequality of federal spending among the states is due to the military spending alone, giving immense political power to those who distribute those funds, even though military spending was only 25% of the total.



federalspending.gif (19014 bytes)


Changes in military spending have had a large impact on the history of the Cold War. The lowest military GDP% of the Cold War helped reelect Truman in 1948 after three years of negative growth. The largest one year peacetime increase in military spending created the 1982 highest unemployment of the Cold War. Military cuts triggered the early sixties boom and the nineties boom in the economy. The three year slump after WWI may have hurt Wilsons efforts to join the League of Nations

War economies only boom if deficits support the boom. Paying for the war can ruin an economy. Every war is followed by a recession, the bigger the war the bigger the recession. Both World Wars were followed by three year drops of 15% of GDP. The Cold War was also followed by a three year increase in unemployment, and Vietnam was followed by a two year slump.

The militaristic nature of football helped beat baseball out of the favorite sport spot during the Cold War. The military cuts of the early sixties and the post Vietnam seventies may have economically boosted the Green Bay and Pittsburg dynasties coming from low military areas. The Reagan military buildup may have helped high military area teams like San Francisco, Washington, and Dallas in the end of Cold War period.

 

                                                    REAL ECONOMY
                                                       4930 Ascot Lane
                                                       Madison, WI  53711
                                                       Tel:   608.230-6640
                                                       Fax:   none
                                          
                                                       email:   bobreuschlein@gmail.com
                                                       For comments on this web site: 
                                                       bobreuschlein@gmail.com
                                                       All rights reserved copyright 2012