- Reaction score
- 35
- Points
- 560
In real economic terms, direct spending on the military only moves dollars around on a ledger (or putting money from your right pocket into your left, if you want an analogy). Military spending by itself does not create growth.
If Canada were to be actively selling its warships around the world (building 35 Halifax class frigates and selling them to other nevies) then that would be an example of defense spending paying off in real economic benefits. You can think of other military goods and services which *could* be leveraged to provide economic benefits, but these are secondary effects of our initial military spending (i.e. we paid the R&D, and bought the first units), not primary effects. Indeed, in theory we could be building and selling al kinds of military kit that the CF does not even have access to, if some corporation were willing to get into the global arms market (think of Gerald Bull and his high powered 155mm artillery shells and cannon, for example).
Our economic prosperity that derives from military spending is pretty much all second and third order effects: companies have confidence in the long term stability of Canada, interest rates are somewhat lower, corporations have less need of security forces of their own etc. Third order effects are the "Seat at the Table"; other nations are willing to treat Canada as a serious partner and we get to enjoy benefits like diplomatic support for our initiatives and interests or entry into trade blocks that would otherwise not want to deal with us.
If Canada were to be actively selling its warships around the world (building 35 Halifax class frigates and selling them to other nevies) then that would be an example of defense spending paying off in real economic benefits. You can think of other military goods and services which *could* be leveraged to provide economic benefits, but these are secondary effects of our initial military spending (i.e. we paid the R&D, and bought the first units), not primary effects. Indeed, in theory we could be building and selling al kinds of military kit that the CF does not even have access to, if some corporation were willing to get into the global arms market (think of Gerald Bull and his high powered 155mm artillery shells and cannon, for example).
Our economic prosperity that derives from military spending is pretty much all second and third order effects: companies have confidence in the long term stability of Canada, interest rates are somewhat lower, corporations have less need of security forces of their own etc. Third order effects are the "Seat at the Table"; other nations are willing to treat Canada as a serious partner and we get to enjoy benefits like diplomatic support for our initiatives and interests or entry into trade blocks that would otherwise not want to deal with us.