Government can increase business revenues as well.
Government enhances “prices by contributing to the
security” (Veblen, 1923: 400). Veblen (1904: 250-256,
1923, 34-5, 398-411) thinks that security is maintained by
spending on police and military; both of these wasteful
expenditures generate a higher level of aggregate
demand that enhances prices and revenues in the shortrun.
In the long-run, however, Veblen thinks that
spending on military will generate disastrous consequences.