Abstract
After an assessment of the Horizon 2020 European Defence Research Program, this article discusses the basic assumption behind both civilian and military expenditures, namely, that such expenditures foster economic growth and are successful anti-crises policies. First, the historical example of the long period of economic growth following WWII is considered. The conclusion is reached that it was economic growth that made possible such expenditures rather than the other way around. Theoretical arguments and empirical data are submitted to substantiate this claim. The Keynesian multiplier and its alternative, the Marxist multiplier, are examined. Finally, the article considers the advantages and disadvantages of the production and export of arms. The following conclusion is reached: the production of weapons (a) while enriching the producers of weapons contributes to the tendential fall of the average rate of profit in the producing and exporting country, (b) impoverishes the workers of the importing country and (c) responds to the offensive needs of the imperialist countries.
Keywords
- European Defence Research
- Tension Fall
- Government Expenditure Growth
- South Korean Workers
- Civilian Economy
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Notes
- 1.
The shortage of male industrial workers (10 million were absorbed by the war effort) was made good by the proletarianization of agricultural labor and by the influx of women into the labor process.
- 2.
If commissions are placed abroad, the beneficial effects on employment are lost. But this is not the principal critique of the multiplier.
- 3.
Innovations are labor shedding, rather than labor saving. ‘Labor saving’ is a deeply ideological term.
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Carchedi, G. (2018). The Horizon 2020 European Defence Research Program and the Economic Consequences of Military R&D. In: Karampekios, N., Oikonomou, I., Carayannis, E. (eds) The Emergence of EU Defense Research Policy. Innovation, Technology, and Knowledge Management. Springer, Cham. https://doi.org/10.1007/978-3-319-68807-7_3
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DOI: https://doi.org/10.1007/978-3-319-68807-7_3
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