Keynesian militarism or wishful thinking?

By George M. Georgiou

“By spending more on defence, we will deliver the stability that underpins economic growth, and will unlock prosperity through new jobs, skills and opportunity across the country” , Keir Starmer, press release, 25 February 2025 

Introduction  

Europe’s commitment to rearm as a response to the perceived threat from Russia, has been partly justified on the grounds that an increase in military spending will stimulate economic