Скачать или смотреть Economics made simple : 5 reasons why public debt and defense budget can boost economy

Immediate demand injection (Keynesian effect)
Higher public debt used for defense spending injects money directly into the economy. Governments place large orders quickly; firms hire, pay suppliers, and wages circulate. In the short term, this raises GDP regardless of long-term efficiency.

Industrial activation and spillovers
Defense budgets mobilize heavy industry, electronics, software, logistics, and advanced manufacturing. These sectors have long supply chains, so spending propagates widely. Many civilian technologies historically emerged as defense spillovers.

Employment and wage stabilization
Defense programs are labor-intensive and politically protected. They stabilize employment during downturns, support middle-skill manufacturing jobs, and reduce unemployment volatility, which sustains consumption.

Capacity building and strategic autonomy
Debt-financed defense spending can expand national industrial capacity (plants, skills, R&D). This can improve export potential and reduce reliance on foreign suppliers, strengthening the trade balance over time.

Confidence and geopolitical risk pricing
Higher defense spending can lower perceived geopolitical risk. If investors believe the state is more secure and stable, borrowing costs may fall or remain contained, partially offsetting the debt increase.

Hard truth: this works mainly in the short to medium term. If debt finances low-productivity projects or crowds out private investment, growth fades while debt remains. Defense spending boosts economies best when it builds transferable capabilities, not just consumes resources.