New Study: Militarization Can Save Germany’s Economy
The new administration in the United States is demanding drastic military buildup from its European partners. In Germany, where the economy is already struggling, many wonder how the enormous numbers will fit in the budget. But a February 20 Handelsblatt report titled “Growth Through Rearmament—Germany Could Benefit Greatly” cites studies making the case that higher defense spending will offer economic benefits.
Economic growth: According to a study by EY for Dekabank, annual value creation will increase by €46 billion (us$48.1 billion) if European nato countries increased their defense spending from 2 percent to 3 percent of gross domestic product.
The investments would also create 660,000 new jobs. According to the study, German value creation could increase by €6.4 billion, with 50,000 additional jobs. EY claims defense investments could increase gdp growth by 0.66 percentage points.
Buy European: If European Union states increase their military spending to as much as 3.5 percent of their gdp and purchase military equipment in Europe rather than the U.S., economist Ethan Ilzetzki from the London School of Economics believes the EU’s gdp could increase by 0.9 to 1.5 percent per year.
Deceptive hope? While defense investments could stimulate the economy, provide higher employment, and even benefit civilian industrial sectors, military goods do not bring profits like new farming machines and other products. They cost money to store and deploy.
The history of World War ii teaches us that investments in the military stimulate the economy only in the short term. Adolf Hitler justified such investments by putting the weaponry to work, making a profit through territorial expansion and plunder.
Prophesied trend: The Bible foretells that Germany’s industrial power, built up over decades, will be the engine of a militarized European superpower. This militarization will lead to war.
Learn more: Read Trumpet editor in chief Gerald Flurry’s article “Germany’s Astonishing Military Rise.”
