The Impact of U.S. Defense Spending on Long Term Economic Growth

There is much debate on the impact and effects the United States defense spending has on its economy. This paper furthers that discussion by asking specifically if there is a positive correlation between level of defense spending across multiple categories and US economic stability and growth. Using two models for measuring spending impact on economic growth—the Roma Model and the Production Model—and looking at the impacts of technological advancements made by military contractors, my research shows large defense spending is necessary to prevent recession and to foster growth in the US economy. Thus, I show that higher levels of federal defense spending most likely lead to positive long-term economic output and growth