83. when factors of production are lying idle, or when the degree of theirutilization does not correspond to their productive capacity, military outlays maystimulate the economy in the short run through a rnultipller effect, that ls, byproviding additional national product and by creating additional demand. ?his explains why sone societies with unutilized or underutilized resources nay not experience any immediately negative econonic consequences frorn lnitlal nilitaryoutlays. 43,/ But this does not prove the uniqueness of mllitary outlays instinulating economic Arowth even in underutllized econonies, because it does notprove that an increase in autononous civilian outlays of slmilar rnagnitude wouldnot have yielded an egually, if not more, stimulating effec! on the econony. l,torerecently, several studies of the employnent effecta of alternate civillan andnilitary expenditures in developed countries have shown that $1 biUion spent onthe former will, in general, creaee two to four tines larger job op,portunlties as cotnPared to a simil-ar allocation for the l-atter. These conclusions are drawn fromthe specific characteristics of the arnanents industry, namely, its research and technology intensity, its capital intensity and its high degree of concentration in sonP geographical regions. 44/ 84. When the factors of production are fully utitized, total output cannot be expanded but military outlays wiII create additional inflationary pressures and,/or lovrer production of civj.lian goods by creating supply-side constrainls andbottle-necks. The supply side of economic grovrth is generally viewed as dependingon three factors! the size of the labour force, which is deternined Largely by denographic trends, the capital fornation, which is deterrnined prirnarily by the share of investment in the gross dornestic producti and lhe factor of productj.vity, Hhich depends heavily on the technological inpetus related to R and D efforts. Although the size of the labour force is apparently an autonolpus function of the
**Analysis**
The text discusses the impact of military outlays on the economy, specifically in terms of job creation, utilization of factors of production, and inflationary pressures. It also mentions the comparison between military and civilian expenditures in terms of employment opportunities. These topics are closely related to economic development and employment.

**Category**
Economic development, Employment