ABSTRACT
Intuitively, most people feel that the allocation of men and money to the military is a burden. The heavier this burden is, the worse economic performance should be. Men serving with the armed forces are not available for directly productive work. Money spent for armaments is not available for investment. Moreover, it may be argued that defense burdens prevent the establishment or improvement of the welfare state. Under this assumption defense burdens might also contribute to income inequality. In general, the intuitively appealing image of defense is simple: defense is a burden. Under specific circumstances it might be unavoidable to carry this burden, but the economic consequences of defense can hardly be positive.
