The Globe and Mail reports in its Saturday edition that Ottawa has ordered advanced fighter and surveillance aircraft, as well as naval and Arctic patrol vessels, with total costs expected to reach hundreds of billions. The Globe's Eric Reguly writes that defence spending has hit the NATO standard of 2 per cent of GDP and is projected to reach 5 per cent in the next decade.
Canada has chosen Germany's TKMS to build 12 stealth attack submarines for the Royal Canadian Navy, with total costs including maintenance and upgrades potentially reaching $100-billion. Canada has also ordered 88 Lockheed Martin F-35 jets, though it has fully paid for only 16 of them. The government is also considering Sweden's Saab Gripen fighter jet, which would be built in Canada.
The Globe notes that there has been little debate in Parliament or in society more generally about the upside and the downside of this lavish rearmament campaign.
Not all spending is equal; military spending aimed at boosting growth may fall short. In contrast, investing in infrastructure, education, health and research typically offers better long-term returns.
The IMF says defence buildups can boost short-term economic growth but may also lead to higher inflation.
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