This is very true. It is goods and services w/o a consumer. It consumes manpower, material, usurps the real economy, and causes bouts of intense inflation. It does, however, speed technology at a breakneck clip. Look at films from 1938 to 1945. It was a world wide depression that evolved into a spending spree. Jet engines, radar, nylon, penicillan - many advances reared their heads years before their time. Too bad 60 million people had to die. WWII also bankrupted Great Britain. If you could spend your way militarily speaking out of economic collapse, N Korea would be the second leading economy in the World. But you can't.
One aircraft plant was so hard up for workers, they employed the staff of a local brothel. In true Red, White and Blew (sic) Fashion, the ladies proceeded to separate the male aircraft workers from their dough during "breaks". And there was so much money available, and no goods, many of the stay ato homes, 4F's they called them, did rather well. You couldn't buy a new car until late in '46. Of course, you could get a used Sherman Tank, and cruise for the chicks.
It's a shame. We need great technology but it is very expensive. I just saw on the discovery channel the new and improved helicopter plane. That machine is great for the military and that must have cost a pretty penny to develop.