Thanks for the chapter!
Personally I'd say Gaius's way was wrong on many levels. Pride in the country is one thing, but what he had was hubris. Also, he put everything into the military with no regard for the citizens other than expecting them to provide funds for the military. So while he had a strong military, he greatly weakened the people and support that is the foundation of the military. Granted what he did would provide results short term, but long term morale and quality of life for the civilians would keep decreasing resulting in less food and goods being made, less money going around supporting everyone resulting in more and more homeless and jobless, and a rising crime rate. After all, if all the young men are conscripted who's going to take over the farms growing food when their parents get slower and weaker from old age? Or craft goods such as furniture, weapons and armor if the smiths barely have enough money to feed themselves and even less for fuel for the forge and material to craft with, especially if army paying little and everyone else too broke to buy anything?
BTW, been a while since I read a chapter, so does anyone know when Ludavin Arcs the captain of the royal guard first showed up, she's the long haired woman in full plate with fur around the neck between the princess and dark elf is on page 10?