Defense Spending and the Economy
Abstract
In summary, a major defense buildup is already under way, and it will probably continue. CBO's assessment suggests that the buildup need not rekindle inflation. It could, though, retard economic growth by contributing to deeper deficits--and in turn, to high interest rates. There is also the risk that the defense buildup will exacerbate cost growth of weapons systems. To minimize this risk, the Congress may have to take additional steps to improve defense price performance.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 04, 1982
- Accession Number
- ADA530407
Entities
People
- Alice M. Rivlin
Organizations
- Congressional Budget Office