Governments increasing defense budgets must also rebuild the infrastructure behind weapons production. Making 120 mm tank guns in thousands rather than hundreds changes the economics of procurement. A requirement to spend domestically achieves little when a country has defense sales offices but no relevant factories. Building a new plant can depend on machinery with a five- or six-year lead time because existing manufacturers are already expanding their facilities. The comparison with back orders for electricity-grid transformers shows how the same problem affects civilian equipment. Railways and other dual-use infrastructure also belong in the spending calculation.
Notable Point · 2:02:38-2:06:41
Why higher defense budgets do not instantly create weapons
Higher defense budgets require factories and long-lead machinery, while neglected infrastructure can delay the additional weapons governments want.