Unearthing Keynes: Evaluating the Extent to Which Military Keynesianism Explains Economic Growth in Russia

In recent years, Russia’s surge in defense spending has raised a pressing question: can military investment actually strengthen a country’s economy? This thesis explores that question by looking at how Russia’s economy has evolved between 2022 and 2025. The analysis draws on the idea of “military Keynesianism”: a theory suggesting that when governments spend heavily on the military, it can temporarily boost jobs, production, and overall growth, much like other kinds of public spending.

The first part of the research explains how this idea took shape, tracing its origins to the United States during World War II, when massive defense spending helped end the Great Depression. The second part examines whether the same logic applies to Russia today. The findings show a mixed picture: Russia’s war-driven economy has benefited in some areas, but many of the conditions that made the US example successful aren’t present in Russia. The conclusion is that military spending has helped Russia’s economy in the short term, but it’s unlikely to deliver lasting growth. The study warns that relying too heavily on defense spending may bring temporary stability while deepening long-term economic risks. This is a pattern with important lessons for other countries in the modern world.

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Military Keynesianism in Russia.

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