ABSTRACT
This chapter considers the problem of the effects of monopoly sector capital accumulation on the state budget in general and the military and welfare budgets in particular. In effect the federal government has been attempting to transform social expense outlays into social capital for the competitive sector. Welfare and military spending are determined by the needs of monopoly capital and the relations of production in the monopoly sector. Employment in the monopoly sector depends on foreign economic expansion. The civilian development of military technology under the auspices of monopoly corporations and the universities and private Research and development (R&D) firms augments military requirements still further and activates new military R&D and production. Like workers in the monopoly industries, the surplus labor force requires more and more state-financed social services and benefits. The general aim of foreign aid programs is to maintain the world capitalist social order and to create the conditions for its further expansion.
