Europe Is Spending Big on Defense. That Is Not and Will Not Help Its Ailing Economy

 "Spending too much money to increase stockpiles of existing equipment or to buy American-made fighter jets and munitions offers very limited economic benefits, professor at the London School of Economics Ilzetzki said. “Buying the same old equipment from the same old producers provides limited incentives to innovate,” he added.

Economists in general estimate that every dollar of military spending will increase gross domestic product by 50 cents. 

The returns on spending on education or infrastructure tend to be much higher, yielding growth that is greater than the initial investment.

This spring, the European Commission estimated that increased defense spending would lead to a small boost — 0.3 to 0.6 percent — in the total economic output of the 27-member European Union by 2028." [1]

1. Europe Is Spending Big on Defense. Will That Help Its Ailing Economy? Cohen, Patricia.  New York Times (Online) New York Times Company. Aug 27, 2025.