There is in certain quarters the view that national prosperity depends on the production of armaments and that any reduction in arms output might bring on another recession. Does this mean, then that the continued failure of our foreign policy is the only way to pay for the failure of our fiscal policy? According to this way of thinking, the success of our foreign policy would mean a depression.
Ike's speech was pre-empted by the scandal that forced Dick Nixon to go on national T.V. to deliver his famous "Checkers" speech. Ike's invocation of foreign policy failure as the price for economic prosperity overlooked the other half of the equation, as Kalecki had defined it.
It wasn't simply that deficit spending on the military was acceptable to big finance and industry. More fundamentally, they objected to deficit spending that underwrote the social wage and thus undermined their domination of workers.