Podcast Summary
Peace Dividend: Economic Benefits of Decreased Military Spending: The US experienced a decrease in military spending after the Cold War, but reinvesting these funds into social services, housing, and other areas has proven to be a challenge. California's experience offers insights, but realizing the peace dividend's potential for economic growth and industrial transformation remains a challenge.
The concept of a peace dividend refers to the potential economic benefits when military spending decreases during times of peace. After the end of the Cold War, the US experienced a decrease in military spending, freeing up funds for domestic policy priorities. However, reinvesting these funds into social services, housing, and other areas has proven to be a challenge. The US economy has yet to fully realize the peace dividend, despite the potential for significant economic growth and industrial transformation. The experience of California after the Cold War provides insights into how this process can work, but it also highlights the challenges involved. As the economy continues to evolve, finding effective ways to redirect military spending towards domestic priorities remains an important issue.
Peacetime economic conversion: Turning military spending into civilian growth: Effective conversion requires both military budget cuts and a well-planned industrial policy shift. California's post-Cold War experience shows successful transition with aerospace industry and civilian uses of military tech.
Effective peacetime economic conversion, turning military spending into civilian economic growth, requires both spending cuts in the military budget and a well-planned industrial policy shift. Miriam Pemberton, an associate fellow at the Institute For Policy Studies, has studied this concept since the end of the Cold War. During the Clinton administration, over $81 billion was set aside for job training and civilian uses of military technology after defense cuts. However, the Institute For Policy Studies noted that most of this "peace dividend" went towards reducing the deficit rather than social needs or job creation. The government fell short of its spending goals, leaving a significant gap in the economy. Miriam emphasizes that peacetime economic conversion is achievable, as demonstrated by California's post-Cold War transformation. With a strong aerospace industry, California accounted for a quarter of all aerospace jobs in the US. After defense cuts, the state managed to shift its industrial policy effectively, ensuring a smooth transition for displaced workers and fostering civilian uses for military technology.
Displaced aerospace workers find new opportunities in electric cars: During the peacetime conversion process, displaced aerospace workers faced challenges in finding new jobs due to their specialized skills. However, a government mandate for zero-emission vehicles led to the creation of CalSTART, which provided new opportunities for these workers in the electric car industry
During the peacetime conversion process in the late 1980s and early 1990s, the closure of Lockheed's Burbank facility led to the displacement of thousands of highly skilled aerospace workers. These workers, who were once well-compensated, found themselves in a difficult position as their specialized skills did not easily translate to other industries. However, a silver lining emerged when the California state government adopted a new requirement for car companies to make zero-emission vehicles. This mandate led to the creation of CalSTART, a consortium that set up shop in Lockheed's old Burbank facility, providing job opportunities for displaced aerospace workers in the new advanced manufacturing industry of electric cars.
Opportunity to shift military spending towards civilian projects during the post-Cold War period: The climate crisis necessitates redirecting resources from military spending towards climate prevention for national security reasons.
The period following the end of the Cold War presented a unique opportunity to shift military spending towards civilian projects, such as the development of electric vehicles and other green technologies. However, the resurgence of military spending after the 9/11 attacks and the ongoing conflicts in the Middle East and Ukraine have complicated efforts to make such shifts. Miriam Horn, an author and environmental advocate, argues that the urgency of the climate crisis makes a strong case for redirecting resources away from military spending and towards preventing climate catastrophe. Horn emphasizes that high military spending does not have a strong justification and that investments in climate prevention are crucial for national security. The ongoing nature of military conflicts makes it challenging to make the case for conversion, but Horn believes that the potential consequences of climate change make it an even greater threat to national security than military conflicts, except for nuclear exchanges. The NPR episode "The Military Spending Dilemma" was produced by Cooper Katz McKim, engineered by James Willett, fact-checked by Angel Carreras, and edited by Patty Hirsch. The advertisement comes from Fundrise, a paid sponsor, and encourages listeners to consider investing in their flagship fund to take advantage of discounted real estate assets due to high interest rates.
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