by Dave Roberts » Mon Oct 29, 2012 12:27 pm
The space race was a giant government stimulus of scientific and manufacturing research and development. Personal computers were born out of the government funded research from the space race, especially the Apollo Program. LBJ brought home some of the biggest bacon ever issued when the Johnson Space Center was built outside Houston (most of which was moved from Langley AFB in VA). There were many dead-ends funded here as well as the richly successful. It certainly also paved the way for satellite communications technology.
The space shuttle program was again a gigantic research investment that furthered satellite technology, space research like the Hubbell, and invested heavily in the technology of materials manufacture and development that would have not come to fruition without the stimulus of these areas.
The 1980's arm's race certainly favored major defense contractors as well as the heavy investment in technologies such as cruise missles and smart bombs. The government chose the industries to be favored at the expense of others. Again, it was a major stimulus of the economy during the 1980's. If you doubt the favoritism, look at the growth of Northrup-Grumman during those years.
Romney also favors a stimulus for shipbuilding that again will reflect government favor for one part of the economy. It seems that we only assume it's a stimulus if it doesn't favor something we like. Otherwise, it's just a natural government expense.