Beyond Demand: The Supply-side Benefits of Military Spending

September 9, 2015

At a recent event, former Federal Reserve Chair Ben Bernanke spoke on the positive externalities of defense spending. He concluded that demand-side benefits created by spending multiplier effects were dwarfed by the positive supply-side impacts of defense R&D. Defense R&D creates positive spillovers to the rest of the economy, acts as an early buyer for new technologies, and generates non-defense R&D, writes Adams Nager in Innovation Files.