The federal government‘s bold new $3.8 billion plan to increase Australia’s military manufacturing industry might be seen as hawkish on one level or an innovative way to boost employment on another.

Alternatively, cynics might just see it as a positive headline to get 2018 off to a bright start ahead of the first sittings of government next week.

After a very ordinary 2017 where the government failed to make an impact on the opposition’s lead in the polls, Prime Minister Malcolm Turnbull will be desperate for any good news this year.

The centrepiece of the strategy will be a new financing facility that will make up to $3.8 billion available to Australian defence companies looking to sell overseas.

And that’s where the gamble comes in.

The arms trade is not like other forms of trade. Its main customers are states and its transactions don’t merely reinforce the world order, they can reshape it – at times violently.

So when the federal government announces that billions of dollars are to be directed towards making Australia a global force in this trade, practical and ethical questions are raised. On the practical side of the ledger is the question of capacity.

Labour conditions mean that many international competitors in this space can likely produce arms more cheaply than Australia, and in greater numbers.

Another key question is that of the prevailing climate for exports. Any attempt to expand our presence would place Australia in competition with some of our closest allies – including “America first” under the Trump regime.

But if the government does bite the bullet and push on with this plan, there are potentially great benefits for the country – particularly in regions set to benefit the most.

The Central West is one of those, with the Lithgow Arms factory – part of the international defence tech company Thales – as well placed as any to take advantage.

At time when we bemoan the loss of so many manufacturing industries in our country – particularly the closure of car-making plants – perhaps we should welcome any new investment in any sector.

But it won’t be easy, and plenty of people will be uncomfortable with the though of making money from arms. What is more powerful – a gun or the mighty dollar?