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Canada officialy hits NATO 2% GDP target
(www.cbc.ca)
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None of those are bad things (many are long overdue), and they are also largely spending within the Canadian economy, so that is a benefit as well.
I agree with your statement, but at the same time it also doesn't increase our military capabilities.
Competitive pay can definately help with retention and recruitment.
It is apparently already having an affect on recruiting and hiring.