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Concept
Economic militarism
Résumé
Economic militarism is the ideology surrounding the use of military expenditure to prop up an economy, or the use of military power to gain control or access to territory or other economic resources.
Thus a link between output and military expenditure can be made. The scope of this effect depend on : threat faced, productivity of factors, degree of the military utilisation, finance method of military spending, its externalities and effectiveness of this military spending in countering the treaty. As a consequence, a same amount of military spending in different countries can have wide-ranging effects.
The first important use dates from 1939 with Germany Rampant: A Study in Economic Militarism by Ernest Hambloch, a long-serving British diplomat. Germany Rampant "traces the philosophy of Nazism to the German mythological figures of ancient times."
Since this book the term has been used in connection with the ancient Aztecs, and with militaristic movements in a variety of cultures, and applies to the ideological and cultural aspects of a state, society or group that sustain the drive for hegemony or empire. For example, Joseph Kenney applies the term to the Almoravids.
In 2003 Clyde Prestowitz, of the Economic Strategy Institute published a book containing his analysis of what he called economic militarism in American foreign policy, that was reviewed in The Economist magazine.
Military expenditure can impact the economy of a country and its growth through the demand effect. An increase of military spending, will increase the prosperity of the country and its employment rate, thanks to a rise of demand. It is link to the Keynesian multiplier effect, introduced by Richard Kahn in the 1930s, that states that every exogenous rise in government expenditure will decrease unemployment and increase growth, no matter the form of expenditure. However, the extent of this effect, and some potential others, will depend on the way this expenditure will be financed (see War finance).
Changes in the industrial output will also appeared when military expenditure is increased.
Source officielle
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