At a time of slow economic growth (or even negative growth on a per capita basis), some see military spending as a drain on resources or a distraction from other priorities. However, rearmament can be a potent economic stimulus and driver of innovation that improves the lives of Canadians.
During times of perceived relative scarcity, governments face massive pressure to direct spending only to areas that are seen as immediately impacting the lives of citizens. While the public generally always likes tax cuts and social program spending, during times of growth, there is a willingness to accept spending on a wider range of priorities. When people feel money and resources are scarce, that acceptance erodes.
That’s the position Canada is in today. Many Canadians are struggling, and the budget deficit is substantial, making any seemingly ‘extraneous’ spending appear both removed from the day-to-day lives of the Canadian people and unaffordable. In this context, large-scale rearmament is a tough sell with voters, as recent Privy Council research revealed:
“Taxpayers oppose Prime Minister Mark Carney’s promise to raise defence spending to 5 percent of GDP, says in-house Privy Council research. “Almost all reacted negatively” in federal focus groups, said a report: “Many believed 5 percent of GDP was far too high.””
Now, it should be noted that the 5% target is really 3.5%. The long-term NATO goal is to spend 3.5% directly on national defence, and 1.5% on ‘defence-related infrastructure’. That means investment in airports, ports, electric grids, roads, rails, and more can be counted towards the 1.5% supplementary number.
Overall, however, the point is clear: Many Canadians don’t see a link between military spending and their own wellbeing, and thus – at a time of scarcity – oppose large-scale rearmament.
The challenge is that while public opinion is pushing in one direction, world events are pushing in another. Canada cannot ignore China’s rearmament, and we cannot ignore the threat Russia poses to our allies and to our territory in the North. Further, we cannot ignore the shift in the U.S. role in the world, meaning we cannot assume we would have U.S. assistance in a time of crisis. Rearmament is thus a necessity to ensure our sovereignty and strengthen our security.
What our leaders need to do is connect the high-level concepts of rearmament and national defence to tangible, day-to-day benefits in the lives of Canadians. This has the benefit of being true. Military spending has significant benefits, and benefits that are especially important now. Here’s why:
Jobs for young Canadians
A large-scale military buildup requires production and personnel. We need to produce more military equipment and recruit a large number of people to the Royal Canadian Air Force, Canadian Army, and Royal Canadian Navy. Many of those production jobs and Armed Forces jobs will be filled by young Canadians, who can gain valuable work experience and financial stability. Further, cadet programs can be expanded, and a large expansion of the CAF Reserve force will expand the opportunities for young people to serve our country. While this will not fix the tough job market for young Canadians on its own, it will help.
Research & Development
Military spending – when well-directed – should be paired with stronger research and development. Given that Canada’s R&D spending lags, a military-linked R&D spending surge would help Canadian universities, businesses, and long-term economic growth. And given the link between innovation and long-term GDP growth, a strong case can be made that military spending can be a great generator of initial R&D investment. This is even more true today, because the rapid changes in warfare mean ‘military investment’ is also investment in artificial intelligence, the domestic drone industry, and robotics.
Immediate economic activity
Consider what will happen if a budget supporting large-scale rearmament passes in the House of Commons. New airbases, ground bases, naval bases, and upgrades to existing bases will begin initial construction, creating jobs almost immediately and generating economic activity in surrounding towns and communities.
Canadian military companies will get immediate investment, enabling new hiring and incentivizing the development of new production facilities, requiring the hiring of Canadian workers. A wide range of Canadians will benefit, as construction workers, managers, engineers, entrepreneurs, tech workers, and more will all be needed. This means money flowing into the pockets of a large number of Canadian workers and businesses, money that will help generate economic activity, make Canada more innovative, and make Canada more secure.
Protecting key industries
The Canadian auto sector and steel/aluminum sectors are all facing significant challenges due to U.S. tariffs. Those industries are also essential to military production. While we cannot control what other countries do in terms of tariff policy, we can control what we do when it comes to protecting our key industries. And one of the best ways to do that is to build up the military. Canadian steel and aluminum will be needed to build new ships, drones, ammunition, armour, armoured vehicles, and more. The Canadian auto sector has facilities that can (in the worst-case scenario of a breakdown in the Canadian auto sector) be purchased by the government/Canadian-owned private sector firms and repurposed for military production. Canadian auto sector workers already have significant skills, and many could be incentivized to work in facilities producing military vehicles.
This will help keep jobs and investment in Canada, benefitting Canadian workers, Canadian companies, and the communities dependent on their economic activity.
As you can see, military spending is uniquely suited to boosting Canada’s economy right now and helping to offset some of the economic headwinds we are facing. Canada’s leaders need to start making this case directly to Canadians, to help build support for the rearmament our country desperately needs.
Spencer Fernando
Image – YouTube
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