Sep 3, 2019

The Economics of Military Spending

A Marxist Perspective

Adem Yavuz Elveren

Hosted by Andrea Bernardi

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Summary

I spoke with Dr. Adem Yavuz Elveren about his book on the economics of military spending; this is a very original theoretical and empirical contribution Adem Yavuz Elveren is Associate Professor at Fitchburg State University, U.S.A. His research focuses on gender and social security and the effect of military spending on the economy. The Economics of Military Spending: A Marxist Perspective (Routledge, 2019) offers a comprehensive analysis of the effect of military expenditures on the economy. It is the first book to provide both a theoretical and an empirical investigation of how military spending affects the profit rate, a key indicator of the health of a capitalist economy. We discussed the origin of the book and its main contribution. I asked the author to define what is the economic effect of military spending and how does it compare today with the past? We then reviewed what economic theory says about military spending. We then focused on military Keynesianism. I asked the author to explain the notion of military-industrial complex; what economists and politicians think about it. We then moved to what does a Marxist perspective add to the study of military spending. We concluded our conversation focusing on the empirical analysis on the nexus of military spending and profit rate. The book presents a general discussion on the economic models of the nexus of military spending and economic growth, as well as military Keynesianism and the military-industrial complex. Including an account of the Marxist crisis theories, it focuses on military spending as a counteracting factor to the tendency of rate of profit to fall. Using a range of econometric methods and adopting a Marxist perspective, this book provides comprehensive evidence on the effects of military spending on the rate of profit for more than thirty countries. The findings of the book shed light on the complex linkages between military spending and the profit rate by considering the role of countries in the arms trade.

Andrea Bernardi is Senior Lecturer in Employment and Organization Studies at Oxford Brookes University in the UK. He holds a doctorate in Organization Theory from the University of Milan, Bicocca. He has held teaching and research positions in Italy, China and the UK. Among his research interests are the use of history in management studies, the co-operative sector, and Chinese co-operatives. His latest project is looking at health care in rural China. He is the co-convener of the EAEPE’s permanent track on Critical Management Studies.