We now stand 10 years past the midpoint of a century that has witnessed four major wars among great nations Despite
these holocausts, America is today the strongest, the most
influential, and most productive nation in the worldwe yet
realize that America's leadership and prestige depend not merely
upon our unmatched material progress, riches, and military
strength but on how we use our power in the interests of world
peace and human betterment A vital element in keeping the
peace is our Military Establishment. Our arms must be
mighty, ready for instant action, so that no potential aggressor
may be tempted to risk his own destruction now we can no
longer risk emergency improvisation of national defense; we
have been compelled to create a permanent armaments industry.
of vast proportions. Added to this, 12 3 million men and women
are directly engaged in the Defense Establishment. We annually
spend on military security more than the net income of all United
States corporations. This conjunction of an immense Military
Establishment and a large arms industry is new in the American
experience. President Dwight Eisenhower, "Farewell to the
Nation," January 17, 1961 According to Eisenhower's speech, how
did U. S. involvements in war affect the national economy?*