The Origins of the Permanent War Economy

41 Pages Posted: 20 Mar 2013 Last revised: 10 Jan 2015

See all articles by Thomas K. Duncan

Thomas K. Duncan

Radford University - Department of Economics

Christopher J. Coyne

George Mason University - Department of Economics; George Mason University - Mercatus Center

Date Written: March 19, 2013

Abstract

This paper explains the origins of the permanent war economy in the United States. We emphasize the combined efforts of three key interest groups (military, labor unions, and industry) that arose in the context of the dual crises of the Great Depression and World War II. During the depression and the war that followed, there arose a partnership between industry, the military, and politicians. These crises, combined with the State’s monopoly over the military, created the opportunity for these interests to influence the trajectory of economic activity in a self-serving, and lasting, manner.

Keywords: War Economy, National Defense, Military Keynesianism, Interventionism

JEL Classification: B53, H00, H56, P50

Suggested Citation

Duncan, Thomas and Coyne, Christopher J., The Origins of the Permanent War Economy (March 19, 2013). Available at SSRN: https://ssrn.com/abstract=2235729 or http://dx.doi.org/10.2139/ssrn.2235729

Thomas Duncan

Radford University - Department of Economics ( email )

P.O. Box 6952
Radford, VA 24142
United States

Christopher J. Coyne (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

HOME PAGE: http://www.ccoyne.com/

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://ppe.mercatus.org/scholars/christopher-coyne

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