The Horizon 2020 European Defence Research Program and the Economic Consequences of Military R&D

Abstract

After an assessment of the Horizon 2020 European Defence Research Program, this article discusses the basic assumption behind both civilian and military expenditures, namely, that such expenditures foster economic growth and are successful anti-crises policies. First, the historical example of the long period of economic growth following WWII is considered. The conclusion is reached that it was economic growth that made possible such expenditures rather than the other way around. Theoretical arguments and empirical data are submitted to substantiate this claim. The Keynesian multiplier and its alternative, the Marxist multiplier, are examined. Finally, the article considers the advantages and disadvantages of the production and export of arms. The following conclusion is reached: the production of weapons (a) while enriching the producers of weapons contributes to the tendential fall of the average rate of profit in the producing and exporting country, (b) impoverishes the workers of the importing country and (c) responds to the offensive needs of the imperialist countries.