Economic Surplus Given to War (1951)
In the eighteenth century it may be doubted whether war ever absorbed more than 10 per cent of national incomes. In the twentieth century a major war absorbed up to 50 per cent of national incomes. The reason for this change is, first, the tendency of any system of national defense ... to be "insatiable," up to the limit which the system can support, and, second the constantly increasing proportion of the social product which represents "economic surplus" which is available for social purposes, whether for welfare, fecundity, waste, or war.
"Defense and Opulence: The Ethics of International Economics," American Economic Review, 1951; Collected Works, Vol. I, p. 319.
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