The Bridge with Peter Mansbridge Will New Defence Spending Boost an Economy?
Jun 2, 2025
Janice Stein, a prominent Political Science Professor and Director at the Munk School, delves into the challenges and implications of Canada’s potential defense spending surge, aiming for up to 5% of GDP. She discusses how this could impact job creation and economic growth amidst global tensions. The conversation also highlights Germany's military evolution following Russia's invasion of Ukraine and the need for robust fiscal policies to support local defense industries. Weaves in whimsical ideas like a 'Golden Dome' space defense system amid serious political reflections in Mexico.
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Germany's Strategic Shift
- Russia's invasion of Ukraine forced Germany to drastically shift its defense and energy policies.
- Germany's historic Ostpolitik, heavily reliant on Russian energy, ended with a commitment to massive defense spending including infrastructure upgrades.
UK's Defense Spending Strategy
- The UK plans to boost defense spending to revive its struggling economy.
- Defense spending aims to create jobs and industry in economically declining regions, blending military and economic strategies.
Defense Spending as Economic Stimulus
- Canada, Germany, and the UK share economies struggling with productivity growth and require new investments.
- They aim to rebuild defense industrial bases domestically to grow jobs and reduce dependence on US defense production.