So is it sustainable for our economy to continue to spend as much as we are doing on the military and other expenditures, rack up the kind of ridiculous annual deficits we are now getting and the dismal GDP’s we’ve been getting for over a decade now? Are or we setting ourselves up for the same thing that happened to Russia’s economy when they tried to keep up with Reagan’s military build up? Who are we trying to keep up with exactly? Ourselves?
Today Russia spends 3.9% GDP on the military, $61.4 billion in US dollars. US spent 3.2% GDP, $649 billion. Our NATO total defense spending is over a trillion annually. Look how we yield to Russia often, simply because they have nuclear weapons. Will we feel any less safe if we cut our budget in half? How long can we keep this up?
China is another matter altogether and has been building up their defense considerably, second biggest spender now at $250 billion (in US dollars). And they are only spending 1.9% GDP to get that. If they roughly matched our GDP spending, their defense spending would almost match ours now. Their economy has been growing at an insane pace often doubling, tripling or quadrupling America every year quite easily for the last 40 years, compare to how ours has been trickling along compared to the same time span. China has managed to do it with little debt, only 5 trillion (in US dollars), compare that to America at 23 trillion.
It will be a challenge if we can ever break 3.0% GDP ever again, even more remarkable if we did it without another trillion dollar debt being added to the deficit, those days may be gone for a very, very long time. Don’t think we ever fully recovered from the last housing and mortgage crisis.
At the pace China is going, this is the year they may overtake us as the biggest economy according to the Business Insider. This is basing it on a combination of purchasing-power-parity-exchange rates and GDP. Using the PPP alone, it said they are already considered the world’s largest economy, but says on a nominal basis the US remains in the lead.
Next decade, we will fall much further behind, and India will also overtake us. According to their chart, by 2030, six of the 10 largest economies could be in Asia.
China hasn’t ever been as land hungry as Russia, but once they get up to speed, think we will be in a position to have a chance to keep Taiwan separate from them any longer? Let’s hope that’s all they want.
I gave up on the definition of military bases for now, got sidetracked. If somebody or military man knows how they are defining it, and can explain the discrepancies, hope they will explain it.
Wiki’s Top 15 military by country