ALEX BRUMMER: Labour must rely on military Keynesianism

Published on: March 8, 2025

By ALEX BRUMMER

Updated: 21:50 GMT, 8 March 2025

America’s bounce back from the Great Depression is often attributed to Franklin D Roosevelt’s job-creating New Deal. In fact it was driven by arms production under the $50 billion Lend-Lease scheme ($672 billion in today’s money) agreed between the president and Winston Churchill.

Now, with the US threatening to downgrade its commitment to Nato, Europe has little choice but to dig deep and build more weaponry to keep the Russian bear at bay.

This means Labour relying on military Keynesianism – raising defence spending to boost economic expansion.

Britain has a head start thanks to the prowess of BAE Systems and Rolls-Royce in aircraft technology, avionics, drones, and cyber security. It also has the scientific and research brain power to help.

Pulling together: With the US threatening to downgrade its commitment to Nato, Europe has little choice but to dig deep and build more weaponry to keep the Russian bear at bay

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ALEX BRUMMER: Labour must rely on military Keynesianism

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ALEX BRUMMER: Labour must rely on military Keynesianism