Why More Defense Spending Could Slow Technology Growth

Scientific research in any sector introduces innovations that deliver new products and jobs for society. The science during periods of peace may produce more innovations than the science of war, and Satyajit Das, writing for MarketWatch, points to the end of the Cold War as an example: “scientific and mathematical resources previously employed in the defense-industrial infrastructure were redeployed, helping to accelerate the growth of other parts of the economy, especially technology…. The dissolution of Cold War alliances and improved security conditions for trade and commerce provided impetus to globalization of production and capital flows.” Peace after the Cold War did not last long. Das warns any economic growth from investments in defense is temporary, threatening for fragile economies in debt: “rising security concerns and political risk reduce the attractiveness of global supply chains and deter foreign investment.” Conflict spurs terrorism, failed states and refugees. Das points out how small regional conflicts or internal difficulties can carry great global impact. – YaleGlobal

Why More Defense Spending Could Slow Technology Growth

Global economy is losing “peace dividend” benefits as scientific research shifts away from education and business to security and war
Satyajit Das
Wednesday, February 24, 2016

Read the article from MarketWatch.

Satyajit Das is a former banker and author of
The Age of Stagnation (Prometheus Books)

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