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Comment by mikegagnon

The United States economy is based upon Military Keynesianism.

The federal government does not analyze spending the same way we do because __spending benefits the economy__, which is part of the government's responsibility. They intentionally spend money to stimulate the economy.

So when the military spends $1 trillion on planes, they are really trading $1 trillion for planes plus economic stimulus.

In other words, the planes don't literally cost $1 trillion. Rather the cost of the planes = $1 trillion minus the economic benefit of spending.

http://en.wikipedia.org/wiki/Military_Keynesianism

parent mikegagnon 13 years ago

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