To top it off - a lot of that money will just "disappear" from the defense dept. books. Somebody is making/stealing a lot of money.
Military spending is bullish for stocks in the long run, this may contradict everything you hear in the media, but it's a plain fact. Read the Report From Iron Mountain, to get further insight.
Incorrect. Russia's numbers are understated by a factor of ten. And while I agree we waste alot on empire building, the amount we spend on nuclear ability and defense is insufficient. There is no amount of money that is too much to pay for deterrance through strength.
Certainly, any gov't spending is helpful to the economy and stocks. Private spending is also. However, our gov't spending would help a whole lot more stocks and the nation & world if the money WASTED on military goods was spent on useful things. R&D in energy, space, the environment, the ocean, and medical care just to name a few. Improvements in roads (not advocating NEW roads), our schools, our airports and mass transportation. Revitalizing our cities would also be a boon to our life and economy. Our bloated and immoral military spending is nothing short of insanity and a national psychosis.
Dont forget china= 300 billion/1.3 billion people = $225 per person. Kinda scary though isnt it? That if china wanted to spend as much as we spend it would only cost them about $450 per person....
So are iPods for example, a "waste" You can't eat ipods, they provide no shelter, you may wear an ipod, but it will not protect you from the elements. During crisis people spend less (including ipods), you may increase the military budget, creating "demand" when there's not adequate demand in the civilian markets.
google chalmers johnson here's a good read: http://www.countercurrents.org/us-lendman020307.htm And a long clip, says much the same. http://www.youtube.com/watch?v=sQi4-97GXrI&feature=PlayList&p=46A3C0BE053336A1&index=3