17:09 18 March 2025
Koźmiński: a war economy could boost GDP, followed by a crash
Many world leaders emphasize the need for increased military spending, shifting economies into a wartime mode. Prof. Andrzej K. Koźmiński warns that while this may initially boost GDP, it could lead to a historic economic crash.
Military and high-tech industries benefit, as seen in soaring defense company stocks after PLN 800 billion was announced for EU defense investments. However, wartime economies prioritize military needs over consumer goods, potentially causing shortages, inflation, and economic strain.
Poland plans to redirect PLN 30 billion from EU funds to defense. A strict government control system may emerge, limiting democracy and increasing state intervention. Though historically effective in the U.S. and Germany, wartime economies risk long-term economic crises and financial instability.
