4 ms·
If compared to the US, isn't Europe spending significantly less on defense? I guess that Europe will spend more now. I think a big defense budget is a factor, t
by MichaelMoser123 4y ago
If compared to the US, isn't Europe spending significantly less on defense? I guess that Europe will spend more now. I think a big defense budget is a factor, the money spent on military hardware doesn't trickle down through the economy, as far as I know.
- xeyownt 4y agoYou mean that US has more inequality than EU because they spend more on defense?
- MichaelMoser123 4y agoyes, investment in any other area benefits the whole economy - like infrastructure or education. Military hardware is very specialized, for example you can't use the armor of a tank for any other purpose. Also the price of military equipment tends to be very high, some say it's artificially high. It generates huge profits, but only to the benefit of few people. This in turn is pushing inequality. However if you don't invest enough in these thing, then you stand the chance of running into real problem. However it is hard to tell what the right balance is...
- orwin 4y agoMoney spent on military hardware you build yourself 'trickle down', especially if the company (like Safran) have its profits regulated by the state (since our ministers are their best salesmen, i think it's fait tbh). But money never really trickle down if you don't produce necessary goods. Maybe it was a valid theory when half the economy was agricultural and 80% of the industrial output was useful for everyone (aka directed towards food, medicine and construction), but nowadays nobody really believe it works.