The Cold War defense spending helped workers and cut inequality

Defense spending during the Cold War boosted manufacturing jobs and reduced income gaps. The draft also removed young men from the labor force, lowering civilian unemployment.

This paper argues that the Cold War's military spending was a significant factor in the inclusive economic growth seen after World War II. By increasing manufacturing employment and reducing inequality through procurement, it shaped the labor market for decades. The draft also played a role by reducing the number of young men competing for civilian jobs.