The Origins of the Permanent War Economy
By Christopher J. Coyne, Thomas K. Duncan
This article appeared in the Fall 2013 issue of The Independent Review

Abstract

Led astray by Marxist and Keynesian dogma, the literature on the origins of the permanent war economy has overlooked a leading cause of the elevated levels of U.S. military spending since the end of World War II: the economic rents created by the federal government’s monopoly on national defense, and the pursuit of those rents by the labor, industry, and military lobbies. Although the permanent war economy benefits powerful special interest groups, it generates a significant negative externality by diverting resources from other, private uses.



Other Independent Review articles by Christopher J. Coyne
    Summer 2016   The War on Drugs in Afghanistan: Another Failed Experiment in Interdiction
    Spring 2016   Perilous Partners: The Benefits and Pitfalls of America's Alliances with Authoritarian Regimes
    Fall 2014   Perfecting Tyranny: Foreign Intervention as Experimentation in State Control
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Other Independent Review articles by Thomas K. Duncan
    Fall 2014   Torpedo: Inventing the Military-Industrial Complex in the United States and Great Britain



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