Not sure I understand why, in the long run, Europe would want to buy American weapons to defend itself against Russians. The election of DJT was the final wake up call for the EU to become self-sufficient militarily and economically.
Agree in principle. At least in the short run though, there are arguments to buy American, most obviously to achieve a trade deal. Long run it’s debatable, although it’s not obvious to me that Europe would be able to do without buying at least some US kit given the technological advantage they have (although I claim no expertise on defense).
Thank you Gianluca. The way I’d phrase it is that if Europe becomes more efficient, it need not worry too much about debt. But that might be a big “if”.
Not sure I understand why, in the long run, Europe would want to buy American weapons to defend itself against Russians. The election of DJT was the final wake up call for the EU to become self-sufficient militarily and economically.
Agree in principle. At least in the short run though, there are arguments to buy American, most obviously to achieve a trade deal. Long run it’s debatable, although it’s not obvious to me that Europe would be able to do without buying at least some US kit given the technological advantage they have (although I claim no expertise on defense).
Indeed, we could If we -collectively- are willing to get our act together
MEGA!
Nice post. I like the emphasis on demand. My view is that at the limit "demand creates its own supply" (the inverse of Say's law). (https://libertystreeteconomics.newyorkfed.org/2019/04/the-keynesian-growth-approach-to-macroeconomic-policy-and-productivity/). Europe should not be obsessed with debt but should focus more on how to use efficiently its resources.
Thank you Gianluca. The way I’d phrase it is that if Europe becomes more efficient, it need not worry too much about debt. But that might be a big “if”.