The Guardian: Labour pushes ‘military Keynesianism’ to win support for defence spending

The Guardian writes: “Labour’s push towards increased militarisation, with Keir Starmer already having slashed the aid budget in favour of defence spending, may not be a policy greeted enthusiastically by many of the party’s core supporters.

But the government wants to win support for the change in thinking by arguing that investment in defence helps create skilled jobs, particularly outside London, such as at shipyards in Barrow, Devonport, Glasgow and Rosyth.”

Military Keynsianism is a kind of demand stimulating policy concentrated on the military sector. Hitler’s 3rd Reich was master in this – huge state debts were accumulated to spend hugely on military. Some historians today say that war was inevitable as Hitler’s Military Keynsianism was doomed to collapse.

Military investments are non-productive investments. The return on investment is practically zero – unless the arms are used for piratery or conquest of territory and resources.

Military investments are of absolute need when they are necessary to provide for the security of the citizens. The level of such spending depends on the threat. Some interventionist countries do spend more to support their foreign policies. Military strength and foreign interventions can help in international relations and commerce.

The investments into the military, as they are unproductive, have only little effect on the economy. There may be short-time additional employment. Either the investment is financed by reducing other expenses or by raising debt. Seemingly, the Starmer Government already decided to reduce expenses, such as social aid and foreign development aid. This means that the otherwise existing demand is shifted from consumers to military and there may be even no extra demand which means that it is not Keynsianism, but a simple redistribution of consumption from poor, private consumers towards the state military budget.