theless, numerous individuals would debate milex has negative effects on the economy therefore to improve security policy the UK should decrease military expenditure. According to the military industrial complex milex has negative effects on the economy due to information problems which leads to resources being skewed away from the civilian sector to the inefficient military provision. Arguably for the UK this asymmetric information leads to exaggerated risks and inflated military spending as can be seen by the increase in 2016. Despite some benefits many would debate the military sector is more corrupt and inefficient than the civilian sector as well as wasteful. As a result, some economists like Oden argue military spending represents an economic burden.

It could be argued that increased military spending has the inverse effect of decreasing economic growth therefore is negative for UK’s security policy. Galvin’s report argues increased military spending would result in reduced growth rate for the UK. This is because the UK has developed infrastructure and communication therefore there is little gain. Furthermore, further studies would support this idea like Rothschild. His report suggests high milex impedes growth due to impact on export levels. High milex reduces export availabilities in the machinery and transport equipment needed for export expansion therefore dampens export led growth. In fact, for the UK increased spending leads to a greater opportunity cost for the government. Arguably, increased milex diverts funds away from health and education causing alternative threats to security policy. Moreover, the UK is constrained by the ever-growing budget deficit. Increased milex would result in worsening the budget deficit therefore having negative effects for the UK economy for example increasing national debt which is unsustainable.

An alternative method to fund increased milex could be to increase and fund through taxes. However, this would have knock on negative effects on the UK’s growth rate. Increasing taxes on individuals would lead to decreased consumption as a result of net wage falling therefore reducing aggregate demand and growth. Similarly, taxes on companies would lead to less profit and innovation affecting the quality of products so reducing growth as demand is reduced. These effects would lead to greater issues for the UK therefore the UK will improve security by reducing milex.