Paul Kennedy's (1987) retrospective and prophetic volume, The Rise and Fall of the caused quite a stir when it suggested that military spending leads to the downfall of the very nations that use it most heavily to project their influence internationally. Drawing on examples of Ottoman Turkey, Hapsburg Spain, Napoleonic France, and nineteenth-century Britain, Kennedy theorized that Great Powers, or major players in the world system, invariably suffered from imperial overstretch, an excessive spending on troops, navies, and weapons systems that saps investment from the civilian sector and contributes to the gradual erosion of their economic competitiveness. Eventually, as first-rate powers became second, then third-rate, ones, declining tax revenues from increasingly inefficient economies hampered the ability to project military influence abroad. It takes little imagination to apply Kennedy's warning to the world's foremost Great Power today. The strength of the Pax Americana since World War II was largely a reflection of the ability of the United States simultaneously to support an enormous nuclear arsenal, a large, well-equipped army, a navy with fleets in every ocean, specialized military operations in troublesome Third World contexts, a ring of military bases around the so-called Communist block, and various alliances with its subordinate partners (e.g., NATO, SEATO, ANZUS). In the 1980s, the U.S. military machine grew mightily under the Reagan administration. In the 1980s, Defense Secretary Casper Weinberger, it was said, never met a weapons system he didn't like. And so were born the B-1 bomber, the B-2 Stealth bomber, the Star Wars spacebased defense system, the Trident submarine, the MX missile, the cruise missile, the neutron bomb, a 600-ship Navy, the Apache attack helicopter, the Tomahawk missile, the F-16 fighter, and many, many others (some of which got their start earlier during the Carter administration). There was, and is, of course, a substantial economic and political cost to these operations. Officially, the Pentagon today consumes roughly 30 percent of federal expenditures, or $300 billion annually. However, other military-related expenditures are throughout the federal budget. Research for nuclear weapons, for example, falls within the domain of the Department of Energy; veterans' payments are included within Health and Human Services; military foreign aid (which comprises the bulk of U.S. assistance extended overseas) is part of the State Department's budget; and significant shares of NASA's budget arc also dedicated to military purposes, such as spy satellites. If these hidden costs are included, the Pentagon's budget may rise to as high as 50 percent of federal government expenditures (Wirls 1992). The differences between military and civilian markets have been clarified in numerous works (e.g., Ettlinger 1992). The Pentagon is a monopsonist-a single buyer in a guaranteed market-largely unconcerned about price or profit. Ostensibly, the main criteria underlying decisions to purchase weapons include quality and acquisition times. The demand for military goods and services, therefore, is