peace dividend(redirected from peace dividends)
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A byword for the benefits for a government's budget (and presumably for the economy as a whole) resulting from a reduction in military spending following the end of a war or conflict. The peace dividend frees up money to spend on other things, which may have a significantly positive effect in the long term. However, it may cause job losses in some areas that are economically dependent on the military. The term was used frequently in the United States and Britain after the Cold War to justify military budget cuts.
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peace dividendthe additional resources that may be made available as a result of cuts in national defence budgets following improved political relationships between Western industrial countries and the former Eastern bloc countries.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005