In the quarter century following the end of World War II, 'the US economy was the world's most pr... more In the quarter century following the end of World War II, 'the US economy was the world's most productive economy by virtually any measure'. 1 This period is recognised as the nation's 'golden age' of productivity growth. 2 Gavin Wright states that the US' position of leadership in advanced technology was instrumental in providing it with this edge, 3 and military and other defence-related R&D and procurement were fundamental factors behind this technological development across a spectrum of industries. To exemplify this point, Vernon Ruttan makes it the theme of his book, 'Is war necessary for economic growth?' He makes an attempt to counter the belief that R&D expenditures were a hindrance to productivity and growth, and argues that the economic historians, to a large extent, have neglected the contribution made by military R&D and procurement to the development of commercial technology. 4 However, a number of historians have illustrated alternative sources of stimulus to the high level of productivity, and argued that military spending was, in fact, unproductive. Alexander Field, for example, contends that the foundations for the productivity levels achieved in the post-war epoch were already laid by 1941. On the contrary, the war spending mechanism allowed for diversion of significant investment and other resources, such as, labour from the civilian sector which hindered economic growth. Michael Edelstein and Robert DeGrasse support this point by highlighting the negative impact of the military expenditure and the capital demands of subsequent wars on productivity in many commercial markets and industries. This essay assesses the influence of military spending on the development of technology and productivity during this 'golden 1
market policy within the NEP framework, which involved the collapse of the market relation betwee... more market policy within the NEP framework, which involved the collapse of the market relation between the regime and peasantry in 1927-1928. 3 When Stalin decided to embark on rapid industrialisation, grain procurement to supply the towns with food, raising funds through grain exports and a labour supply were essential to this drive. This led Stalin to adopt the policy of collectivisation, which began as only voluntary but in the early 1930s involved driving the mass of the peasant households on to collective farms through any means necessary, freeing him from the dependence on and control of the rural capitalists. However, there was a strong defence for the rightist policies within the party. 4 Stalin, therefore, in order to fuel his immediate industrialisation requirements, had clear objectives for this urgent and rapid collectivisation program. Politically, he aimed to establish his power within the party by eradicating the obstructive rightist support. Economically, he undoubtedly wanted it to provide enough procurement and a labour supply, and ideologically, he aimed for the socialisation of agriculture by eliminating the Kulaks and the other capitalist elements within it to establish central control. The attainment of these objectives would, therefore, contribute considerably to Stalin's desire for unhindered
In the quarter century following the end of World War II, 'the US economy was the world's most pr... more In the quarter century following the end of World War II, 'the US economy was the world's most productive economy by virtually any measure'. 1 This period is recognised as the nation's 'golden age' of productivity growth. 2 Gavin Wright states that the US' position of leadership in advanced technology was instrumental in providing it with this edge, 3 and military and other defence-related R&D and procurement were fundamental factors behind this technological development across a spectrum of industries. To exemplify this point, Vernon Ruttan makes it the theme of his book, 'Is war necessary for economic growth?' He makes an attempt to counter the belief that R&D expenditures were a hindrance to productivity and growth, and argues that the economic historians, to a large extent, have neglected the contribution made by military R&D and procurement to the development of commercial technology. 4 However, a number of historians have illustrated alternative sources of stimulus to the high level of productivity, and argued that military spending was, in fact, unproductive. Alexander Field, for example, contends that the foundations for the productivity levels achieved in the post-war epoch were already laid by 1941. On the contrary, the war spending mechanism allowed for diversion of significant investment and other resources, such as, labour from the civilian sector which hindered economic growth. Michael Edelstein and Robert DeGrasse support this point by highlighting the negative impact of the military expenditure and the capital demands of subsequent wars on productivity in many commercial markets and industries. This essay assesses the influence of military spending on the development of technology and productivity during this 'golden 1
market policy within the NEP framework, which involved the collapse of the market relation betwee... more market policy within the NEP framework, which involved the collapse of the market relation between the regime and peasantry in 1927-1928. 3 When Stalin decided to embark on rapid industrialisation, grain procurement to supply the towns with food, raising funds through grain exports and a labour supply were essential to this drive. This led Stalin to adopt the policy of collectivisation, which began as only voluntary but in the early 1930s involved driving the mass of the peasant households on to collective farms through any means necessary, freeing him from the dependence on and control of the rural capitalists. However, there was a strong defence for the rightist policies within the party. 4 Stalin, therefore, in order to fuel his immediate industrialisation requirements, had clear objectives for this urgent and rapid collectivisation program. Politically, he aimed to establish his power within the party by eradicating the obstructive rightist support. Economically, he undoubtedly wanted it to provide enough procurement and a labour supply, and ideologically, he aimed for the socialisation of agriculture by eliminating the Kulaks and the other capitalist elements within it to establish central control. The attainment of these objectives would, therefore, contribute considerably to Stalin's desire for unhindered
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