From Tikkun.org Israel
By Jonathan Nitzan and Shimshon Bichler

The recent flurry of wars “ from Afghanistan and Iraq to Gaza and Lebanon “ has revived talk of imperialism, military Keynesianism and the military-industrial Complex. Capitalism, many radicals have long argued, needs war. It needs it to expand its geographical reach; it needs it to open up new markets; it needs it to access cheap raw materials; and it needs it to placate opposition at home and pacify rebellious populations abroad.1

The common perception is that war serves to boost the economy. According to this argument, military conflict “ and high military spending in preparation for such conflict “ generates overall growth and helps reduce unemployment. This feature of military spending turns it into an effective fiscal tool. In years of slack, the government can embark on military Keynesianism, increase its spending on weapons and pull the economy out of recession.

Over the longer haul, military expenditures are said to undermine the peaceful, civilian outlook of liberal regimes. Spending on the military boosts the business interests of the large armament corporations, hardens the outlook of the security apparatus and emboldens the top army brass. Together, these groups become increasingly fused in an invisible, yet powerful, military-industrial Complex “ a complex that gradually comes to dominate policy and pushes society toward foreign aggression and military adventurism.

Read More Wars and Money