The Impact of Changes on Military Expenditures on the Washington State Economy

This study provides a better understanding of the nature and significance of military spending to the Washington State economy. The pattern of military spending on Washington-produced goods and services is summarized for the past, and simulations are made for later years. The impact on employment and income of military spending relative to other sources of demand is examined with an input/output model of the Washington economy. Estimates are made of the job growth in Washington that can be attributed to the Reagan military buildup. Three-year simulations indicate that military-generated demand is not likely to be the engine of economic growth in the state that it had been in the previous decade. Growth in the future levels of foreign exports may replace losses in income and employment as future military spending in the state declines.