At first glance, this looks to be true. After all, when the troops came back from WWII, the money they had saved up while overseas played a crucial role in the upswing in the United States economy at that time. However, during that war the majority of the money spent on the war went to the troops and the blue collar workers that supplied the weapons and machines of war, and also the industries that were needed to support the manufacture of said items (i.e., steel, coal, oil, etc.) These were all well paid positions, and many were needed. The majority of the money spent on the war was given to the middle to lower classes, allowing them to increase their standard of living.
In the surrent situation, the majority of the money spent on the war is being spent on technology, whether it is software or research into bigger or more efficient weapons, or machines to more effectively reach our goals. Most of the money spent is going to large, private corporations, which are being funded by our tax dollars ( Chomsky, Welfare for the Rich). These corporations are headed by very wealthy men who reinvest their money rather than spend it, meaning that even less currency is in circulation. For more information on this, read about Reagonomics, or the trickle-down effect. It has been know for years that this theory is flwed.