In 2024, the U.S. spent nearly $1 trillion on its defense budget, equal to 3.4% of GDP. In contrast, NATO members in Europe and Canada spent an average of 2% of GDP on defense. While NATO’s defense budgets have declined since the Cold War, Russia’s military spending has surged by 227% since 2000, and China’s has skyrocketed by 566%.
This graphic shows the top 15 largest defense budgets in 2024, based on data from the International Institute of Strategic Studies. Today, just five prime contractors receive 86% of the Pentagon’s spending compared to 51 contractors being allocated 6% of defense spending at the end of the Cold War. Arguably, this concentration has fostered overspending and lower productivity gains.
In an era of all things new, the Trump administration has fired senior leaders in the military, navy, coast guard, and air force. Senior lawyers were abruptly let go too. Overall, the Pentagon could shed 8% of its personnel.
Ranking in second is China, with a $235 billion defense budget. Yet on a purchasing power parity basis, it stands at $477 billion when adjusting for lower costs in China. Overall, the country’s military modernization includes 600 operational nuclear warheads that are projected to reach 1,000 by 2030 as the country increasingly focuses on reunification with Taiwan.
Russia has the third-largest defense budget globally, at $146 billion, representing 6% of the country’s national income—the highest share since the Cold War. Like China, this figure is much higher in real purchasing power terms, rising to $461 billion. Today, Russia’s nuclear arsenal rivals the U.S. with 5,000 warheads, despite being a medium-sized economy.
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And how much of the US money ends up in the bank accounts of politicians and their buddies?
ReplyDeleteFirst, why label it "defense" when we ALL KNOW 90%+ has NOTHING to do with the actual defense of America? Second, we all know that MOST of that money is simply flowing into Swiss and Cayman Island bank accounts. Third, because defense is mentioned in the Constitution, 90% of Republicans will fight tooth and nail ANYONE who suggests that even a dollar be cut from the budget...even in the face of 50% overt and rampant corruption and waste.
ReplyDeleteSpend...or waste. Possibly half of the money we spend on defense disappears down myriad corrupt rabbit holes.
ReplyDeleteToo much of our defense budget is wasted on stupid spending pushed by Pentagon paper pushers who end up getting a nice retirement package from those they're supposed to be watching over.
ReplyDelete