The Relationship Between Military Spending & Inequality: A Review

This article was published in Daedalus

Abstract

Military spending, often a significant portion of federal budgets, can either increase or decrease inequality. It can decrease inequality by creating jobs and opportunities for advancement, or it can increase inequality by disproportionately benefiting the already well-off segments of society by diverting resources away from programs that help the less wealthy. This essay reviews various studies–covering a range of countries and time periods–that examine the “inequality-widening,” “inequality- narrowing,” and mixed effects of military spending. Overall, the preponderance of evidence supports the theory that increased military spending leads to greater inequality.