Originally Posted by
Frostchamber
I'm no mathematician so happy to be corrected, but I think GDP would need to collapse by something like 25% in order for 3% of GDP not to represent a real increase in defence spending over 2.2%. By comparison, the 2008 financial crisis resulted in a GDP reduction of a little over 6%. Of course any GDP reduction would trim the size of the spending increase, but if my rusty o-level maths is anywhere near correct we'd be approaching Mad Max territory before it wiped it out completely.
Arguably, the bigger issue than GDP is the fall in the pound against the US dollar. THAT is really going to hurt our procurement power, given so much of it is pegged to the dollar.