Howard J. Sherman. 1983. "Cyclical Behavior of Government Fiscal 
Policy." JEI, 17: 2 (June): pp. 379-88. 
 381: Military spending rose when Democrats were in power, but fell 
when Republicans were in power" (except for slight rise during 
Eisenhower's term) during post war period. 
 382: "It appears. . . that the government used military spending for 
the most part as a tool of counter-cyclical planning.  In the average 
peacetime expansion, it fell an average -.14 per month.  In the average 
peacetime, it rose .19 a month." 



On Thu, Aug 20, 2009 at 08:27:24AM -0400, Rudy Fichtenbaum wrote:
> I don't assume that correlation is causation which is why I wrote in my  
> original post:
>
> I am not saying that my analysis proves anything but it sure looks like  
> the big increases in defense spending were strongly correlated with the  
> sharp decline in the unemployment rate. It also appears that defense  
> spending was on the way up well before Pearl Harbor which may be a  
> surprise to some economists like Barro and Mulligan but would not be a  
> surprise to historians.
>
> David B. Shemano wrote:
>> Rudy Fichtenbaum writes:
>>

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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