Military Industrial Complex is a term used to a strong system that is behind the military of the United States; the term became famous from the American President Dwight Eisenhower in 1961 during his farewell address. Military Industrial Complex is an informal association between the military of the Nation and a strong defense industry which commonly supplies interests that influence public policy (Pavelec, 2010).

President Dwight's concern is on the view of warning the American people to be careful on the Military Industrial complex.  Dwight was keen about the emergent size and cost of the new establishment of strong American Defense because he became the president of America in the year 1953 (Pavelec, 2010). Eisenhower expressed his concerns freely and openly in terms that the concerns shocked some of the listeners.

For instance, Dwight preferred the Military Industrial Complex basically to prevent the Soviet Military Union from fitting to be more aggressive. Eisenhower never considered the Military Industrial Complex to get eliminated because he urged the citizens of America to be watchful so that the American power would not get abused. Otherwise, Dwight stated that if the United States possessed an authoritative peacetime of the military, the war was a means to victory for communism.

From an economic point of view, one of the most economic impacts of the Military Industrial Complex on the American economy is a modeling firm of terrorism. Terrorism firm has four effects: both human and physical capital stock of the Americans gets reduced due to terrorist attacks. Second, threats stimulate economic levels of uncertainty before adequate security. Third, high terrorism encourages great increases in the level of terrorism expenditures because resources get drawn from the most productive sectors for proper use in security purposes (Pavelec, 2010).