Can taxpayers count on a "peace dividend"?

USA Today (Magazine) | July 1, 1994| | Copyright

If the cold war is over, why aren't factories, military bases, and laboratories converting to civilian work? What's going on is a permanent war economy in which military activity is large and continuous, and the military output is treated as an ordinary economic product. How did a national consensus that favored defense, as during World War II, get transformed into a permanent war economy?

A good place to start is with NSC-68, "The Report by the Secretaries of State and Defense on United States Objectives and Programs for National Security," April 7, 1950. In its ...

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