Any system that seeks to 'organize' society will have its pluses and minuses.That fact applies to all ideologies, political/governmental systems and societal arrangements. There will always be some form of inequality and from that, stress or strife is the potential.
In terms of the suggestion that a society that bases it's primary function (or one of) on engineering wars, well, my personal opinion is that this statement is not accurate. To that point, the only nation/government that I believe that would be applicable to might have been North Korea under their former leader.
With all this said, I fully agree that no sane person would seek to use militaristic ambitions to bolster an economy. However, as it stands, there are many nations that participate in this endeavor in an indirect manner as a means to prop-up industry. The manufacture of arms and equipment is a global industry, but what I have really observed is that it is the nations that do not have the manufacturing capacity are the ones that are consuming the products and waging many of the wars.