In 2009, the US government spent approximately $668 billion on the military; that’s 4.7% of its Gross Domestic Product. During the Bush administration, military spending rose from 3 to 4.3 percent (the increase began early in 2001, prior to 9/11). Of course, the largest increases in the military budget stem from the wars in Afghanistan and Iraq. In fiscal 2008, these two wars cost US taxpayers $188 billion.
There is a popular American sentiment that war is good for the economy. The Pentagon is said to be an important underwriter of technical innovation and a sizable employer, providing good, stable jobs. To some extent, this is true. The amount of money the US government pumps into the economy for transportation, communication systems and weapons have fostered innovation for more military technology but also for developments like the Internet.
But what if those government expenditures went to health care, mass transportation, and renewable energy? How many and what kinds of jobs would they create? The chart below shows that military spending generates the fewest number of jobs of any of the options presented. And spending on education generates 151% more jobs than military spending.
When the jobs created are compared by total compensation, the military spending comes out on top (due to the military’s outstanding benefits, not wages). However, when jobs are broken down by wages for low-paying, mid, and high-paying jobs, then it becomes evident that spending on education, health care, and clean energy create more jobs at all pay levels than military spending.
Created by CPE Staff Economists Heidi Garrett-Peltier and Sue Holmberg
September 2011
Source: Pollin, Robert and Heidi Garrett-Peltier. October 2009. “The U.S. Employment Effects of Military and Domestic Spending Priorities: An Updated Analysis.” Political Economy Research Institute. University of Massachusetts, Amherst.
http://www.peri.umass.edu/236/hash/9b5e62a1aa9f65f4d22f799a612f6021/publication/382/
