ABSTRACT
For a long time the role of defense expenditures was simply ignored by most economists in the United States. The traditional view of military spending shows up in the bipartisan analysis of the economic effects of the Vietnam War. Among the fifty states there has been considerable variation in the amount of economic activity emanating from the national defense budget. In general, there is a positive relationship between the amount of defense spending and relative growth, despite the conscious policy of the Pentagon to award contracts to regions having higher unemployment rates. This dependence on military activity is particularly evident whenever a military decision is made to close a redundant base. The outcries from the local inhabitants dependent on this activity for their livelihood are echoed in the outraged speeches of their representatives and senators in the halls of Congress.
