Economic Effects of Reductions in Defense Outlays |

Several recent studies have attempted to estimate the supposedly adverse economic and employment effects of reductions in government spending generally, and defense outlays in particular. Such studies have tended to exaggerate the harmful effects of spending cuts and have ignored or understated the beneficial effects associated with redirecting resources to more productive uses. In this essay, Benjamin Zycher, Benjamin Zycher is a senior fellow at the Pacific Research Institute and visiting scholar at the American Enterprise Institute, examines the prospective economic effects of a reduction below the current baseline in defense outlays of $100 billion per year over 10 years. CLICK HERE

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