Pentagon outlays cause net job loss, study says

October 26, 1982

Every $1 billion the Pentagon spends on military purchases causes a loss of 18,000 jobs in the nation because that money is not spent by consumers, a new study says.

Based on Defense Department procurement figures and Bureau of Labor Statistics impact figures for 156 industries, the study said the 1981 military budget of $154 billion ''caused a net loss of 1,520,000 jobs to the industrial and commercial base of the United States.'' The study is by Employment Research Associates of Lansing, Mich.