What a 'war tax' means for the global economy

What a 'war tax' means for the global economy
A pro-Ukraine demonstration in front of Nato headquarters. (Image: Getty)
The Economist
At the end of the cold war, America’s president, George HW Bush, popularised the idea that cutting defence spending would boost the economy. “We can reap a genuine peace dividend this year and then year after year, in the form of permanently reduced defence budgets,” he declared in 1992. The world took note. America itself went from shelling out 6% of its GDP on defence in 1989 to roughly 3% within a decade (see chart 1). Then came the 9/11 attacks and the wars in Afghanistan and Iraq. Now, with Russia’s invasi...

More World

The big AI question: Are you ready to pay for it?
Technology

The big AI question: Are you ready to pay for it?

Consumers tempted to upgrade will find higher prices for AI-powered gadgets.

Mexican fast-food IPO sizzles on Aus market
World

Mexican fast-food IPO sizzles on Aus market

Shares jumped 36% shortly after conditional trade began. 

Australian central bank holds rates
World

Australian central bank holds rates

Official cash rate steady at 4.35%.

China to include Australia in visa waiver programme
World

China to include Australia in visa waiver programme

Last week New Zealand was given a waiver, now it's our neighbour's turn.