Wednesday, July 3, 2024
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What will bring more benefit to the economy: the development of shell production or road infrastructure?

In economic terms, the projectile can be considered as a commodity in which Ukraine can achieve complete localization in the shortest possible time.

This means that every hryvnia spent on the purchase of shells will not just remain in Ukraine. But it will also lead to economic growth of exactly one hryvnia!

And if the state spends 1-2-3 billion dollars on the purchase of shells, while controlling the cost throughout the entire production chain, then this will lead to GDP growth for this exact purchase amount. At the same time, a significant part of this amount will return to the budget in the form of various taxes from the production chain itself to taxes on private consumption by industry workers.

In general, the entire sector of the military-industrial complex of Ukraine can generate a significant part of the local component. By the way, the construction of fortifications has a similar maximum local component, because Ukraine has concrete and metal. And even civilian industrial sectors cannot achieve this level of local content.

Even road construction.

And you know, it’s strange to me that people in the OP don’t understand this, they prove that road construction affects economic growth, but at the same time they don’t understand similar processes in other industries...

And the biggest paradox of this situation is that in our military-industrial complex we are developing a direction with the least local component - drones. Because almost all components are imported. Accordingly, countries exporting these components boost the economies of their countries at our expense.

I have also heard our president address his allies many times, but I have never seen an emphasis on the economic aspects of weapons production in the West. That is, he never told our allies that the production of weapons for Ukraine is necessary not only for the sake of preserving democracy, but also for economic reasons. Because shells in the USA are also produced with the maximum local component...

And that’s why it surprises me how during 2 years of war it was impossible to understand these things, while incompetently wasting gigantic volumes of Western aid.

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Source CN.Blogs
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