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Military Spending and Jobs in Massachusetts

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  • Heidi Garrett-Peltier
  • Prasannan Parthasarathi

Abstract

The authors look at the level of job losses that would be sustained if substantial cuts were made in federal spending on defense contracting in Massachusetts. They compares those impacts with potential cuts at a similar scale to education, healthcare, construction or clean-energy spending, finding that, for the same level of federal spending cuts, jobs losses are 15-20% less in non-military sectors. That is because federal funds invested in education, healthcare, construction and clean energy are far more effective job creators than military spending. Massachusetts loses in two ways when federal dollars are allocated to the military beyond the actual security needs of the nation: it loses funds that may be used for education, healthcare, investment in infrastructure and environment and it loses the larger number of potential jobs that would be created from these alternate uses of federal dollars.

Suggested Citation

  • Heidi Garrett-Peltier & Prasannan Parthasarathi, 2012. "Military Spending and Jobs in Massachusetts," Research Briefs ma_military_may2012, Political Economy Research Institute, University of Massachusetts at Amherst.
    • Handle: RePEc:uma:perirb:ma_military_may2012
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    File URL: https://per.umass.edu/fileadmin/pdf/research_brief/MA_Military_May2012.pdf
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    Cited by:

    1. Cheng-Te Lee, 2022. "Military Spending and Employment," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(4), pages 501-510, May.

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