No economic theorySpeaking on the economics of defence expenditure, Mr. Sivaraman noted that there is no concrete economic theory in favour military expenditure. A popular perspective is that defence expenditure increases aggregate demand in the economy through job-creation, salaries, and government procurement, hence stimulating the economy and contributing to its growth. Nevertheless, this theory has certain counter-arguments, firstly, the opportunity cost of military expenditure is often ignored. Money and resources expended in defence could be used in health, education, and other social sectors, which could have potential impacts on the standard of living. Secondly, defence equipment and weaponry (nearly 50%) is often discarded before they have served their purpose, due to obsolete technology and old age, resulting in wasteful expenditure that does not add any tangible value.
đang được dịch, vui lòng đợi..
![](//viimg.ilovetranslation.com/pic/loading_3.gif?v=b9814dd30c1d7c59_8619)