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How is the Rise in National Defense Spending Affecting the Tenth District Economy?: A Reprint from the “Economic Review”
Chad R. Wilkerson (au); Megan D. Williams (au)
In 2007, the U.S. spent over $650 billion on national defense; this was the largest annual amount since 1945. Defense spending accounts for nearly 5% of overall gross domestic product. National defense represents an even larger share of economic activity in the 10th Fed. Reserve District. The region is home to some of the country’s largest military installations, and a number of private contractors. Is the buildup in national defense stimulating the economies of the states in the 10th District? Increased defense spending is likely to help the region more in the long run than the short run. The region is poised for an expansion of defense spending in the future. The region benefits from a less cyclical defense sector than that of the nation. Illus.
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