So, I think it\’s generally agreed (whether rightly or wrongly) that massive defence spending is what brought the US out of the Depression.
We\’re told here that we risk a Depression unless we provide a similar fiscal boost. So, what does the Government do?
The Armed Forces yesterday became the first significant victims of government attempts to reduce spending in the face of the advancing recession.
Two programmes worth £20 billion will be cut and delayed after defence chiefs were told that there was not enough money to go ahead as planned.
The announcement throws into disarray the Army’s £16 billion update to armoured vehicles, while the Royal Navy’s £3.9 billion project for two new 65,000-tonne aircraft carriers is postponed for two years.