Defence inflation emerges here as a compounding cost mechanism rather than the work of one bad actor. Smaller budgets produce smaller orders, so the research and development bill must be spread across fewer platforms. More advanced technology raises that bill, while privatised firms must recover invested capital and earn a return. Calls for greater innovation do not remove those pressures when the requirement still demands a platform that performs every role. The F-35 illustrates how an ambitious all-purpose specification can make the final increment of capability especially expensive.
Notable Point · 19:05-21:02
Why defence procurement costs compound
Shrinking orders, rising development expense, and commercial returns reinforce one another, making the final increment of all-purpose capability disproportionately costly.