The concept of permanent war economy originated in 1944 with an article by Ed Sard (alias Frank Demby, Walter S. Oakes and T.N. Vance), a Third Camp Socialist, who predicted a post-war arms race. He argued at the time that the United States would retain the character of a war economy; even in peacetime, US military expenditure would remain large, reducing the percentage of unemployed compared to the 1930s. He extended this analysis in 1950 and 1951.
And sure enough, just a few years hence, Eisenhower declared the dangers of this, and warned Americans of the potential disastrous effects of what he coined the Military Industrial Complex if the trend wasn’t reversed. America didn’t listen.