Global Military Spending - NEWS ONLY

So, that would be a trillion more. There are some 130 million households in US. That's 7700 USD per household. How many households would be willing to part with that kind of money in the current economy, for the given purpose?

Sure, not only households pay taxes, but they do pay absolute majority. https://taxfoundation.org/data/all/federal/us-tax-revenue-by-tax-type-2024/

Anyway, that sort of increase is simply unrealistic, unless there is perhaps a clear and imminent danger to US sovereignty. Short of a next world war actually starting ( not just being awaited) i don't think that sort of increase can happen.
 
totoro said:
So, that would be a trillion more. There are some 130 million households in US. That's 7700 USD per household. How many households would be willing to part with that kind of money in the current economy, for the given purpose?

Sure, not only households pay taxes, but they do pay absolute majority. https://taxfoundation.org/data/all/federal/us-tax-revenue-by-tax-type-2024/

Anyway, that sort of increase is simply unrealistic, unless there is perhaps a clear and imminent danger to US sovereignty. Short of a next world war actually starting ( not just being awaited) i don't think that sort of increase can happen.
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https://www.nytimes.com/2021/04/13/business/irs-tax-gap.html

Tax cheats cost the U.S. $1 trillion per year, I.R.S. chief says.​


https://itep.org/55-profitable-corporations-zero-corporate-tax/https://www.budget.senate.gov/chair...rporations-the-wealthy-cheats-american-people
 
And tax evasion exists since the dawn of time. It will not change anytime soon. Sure, some pocket change could be found by changing tax laws and hoping corporations won't find ways to adapt as quickly as laws change. But that's really wishful thinking.

There is no way of magically finding a trillion extra for the military overnight. Maybe within a decade, if the current new cold war rhetoric continues. (And it likely will)
 
totoro said:
So, that would be a trillion more. There are some 130 million households in US. That's 7700 USD per household. How many households would be willing to part with that kind of money in the current economy, for the given purpose?

Sure, not only households pay taxes, but they do pay absolute majority. https://taxfoundation.org/data/all/federal/us-tax-revenue-by-tax-type-2024/

Anyway, that sort of increase is simply unrealistic, unless there is perhaps a clear and imminent danger to US sovereignty. Short of a next world war actually starting ( not just being awaited) i don't think that sort of increase can happen.
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My comment was tongue in cheek. It was to highlight the size of the US economy for one and two our Cold War average was about 6.5%.
 
bobbymike said:
My comment was tongue in cheek. It was to highlight the size of the US economy for one and two our Cold War average was about 6.5%.
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Thanks to the banks in 2008 the US national debt is 50% of GDP higher than it otherwise would be. They pay 5% interest on debt, so the US is wasting an extra 2.5% GDP just on interest payments, which is >$700bn.
 
Forest Green said:
Thanks to the banks in 2008 the US national debt is 50% of GDP higher than it otherwise would be. They pay 5% interest on debt, so the US is wasting an extra 2.5% GDP just on interest payments, which is >$700bn.
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Interest on debt exploded with Covid spending resulting in inflation resulting in fed tightening with interest rate increases.

Expected to surpass $1 Trillion per annum
 

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bobbymike said:
Interest on debt exploded with Covid spending resulting in inflation resulting in fed tightening with interest rate increases.

Expected to surpass $1 Trillion per annum
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It was at ~60% in 2007 and rose to 107% by 2019 before COVID. Surprisingly COVID only accounted for ~10-15% of it.

1727720358159.png
 
Forest Green said:
It was at ~60% in 2007 and rose to 107% by 2019 before COVID. Surprisingly COVID only accounted for ~10-15% of it.

View attachment 742574
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This is debt to GDP the impact from Covid was inflation then massive jump in interest cost.

Like a person shifts his debt from a mortgage to a credit card and says “my debt only went up X%” ya but interest costs went through the roof.
 
bobbymike said:
This is debt to GDP the impact from Covid was inflation then massive jump in interest cost.

Like a person shifts his debt from a mortgage to a credit card and says “my debt only went up X%” ya but interest costs went through the roof.
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The inflation started after COVID in Apr/May 2021, that's more a reflection of the debt-to-GDP impacting the exchange rate IMO rather than anything COVID specific. Interest rates changed only after the Ukraine War started.

https://tradingeconomics.com/united-states/inflation-cpi 1727723086502.png

https://tradingeconomics.com/united-states/interest-rate 1727723287491.png
 
Forest Green said:
The inflation started after COVID in Apr/May 2021, that's more a reflection of the debt-to-GDP impacting the exchange rate IMO rather than anything COVID specific. Interest rates changed only after the Ukraine War started.

https://tradingeconomics.com/united-states/inflation-cpiView attachment 742586

https://tradingeconomics.com/united-states/interest-rateView attachment 742587
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Huge majority of economists blame post 2020 election spending for inflation forcing the fed to raise rates. But notwithstanding proportioning different policies and their specific impact it’s interest rates that’s driving the massive increase in the cost of debt.

Have you renewed your mortgage lately? There you’ve had a massive increase in your cost of borrowing even though the loan amount [debt] didn’t change.
 
bobbymike said:
Huge majority of economists blame post 2020 election spending for inflation forcing the fed to raise rates. But notwithstanding proportioning different policies and their specific impact it’s interest rates that’s driving the massive increase in the cost of debt.

Have you renewed your mortgage lately? There you’ve had a massive increase in your cost of borrowing even though the loan amount [debt] didn’t change.
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Hmmm... the deficit was higher in 2020 than any year following but 2020-2021 was down to COVID, it has since fallen to pre-2020 levels. The problem is that the debt is a lot higher than it should be, that affects exchange rate, which then causes inflation, which needs interest rate increases to counter it.

All that said, if the debt was still at the 60% of 2007 in 2019, and all that happened, the inflation and rate rise wouldn't have happened either.
 
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It’s the timing of spending. If you are replacing lost demand because the government sent everyone home than total aggregate demand is similar but when you have largely recovered from the Covid recession you are massively increasing aggregate demand against what is a weaker supply side of goods and services. Too much money chasing too few goods the definition of what causes inflation. US dollar index was strengthening as inflation rose

https://www.tradingview.com/symbols...current value of U.S.,24, 1985 — 164.720 USD.Federal Surplus or Deficit (FYFSD)
2023:-1,693,725
2022:-1,375,920
2021:-2,775,350
2020:-3,132,456
2019:-983,588
Anyway going round and round ultimately there’s very little room to increase defense spending unfortunately.
 
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bobbymike said:
It’s the timing of spending. If you are replacing lost demand because the government sent everyone home than total aggregate demand is similar but when you have largely recovered from the Covid recession you are massively increasing aggregate demand against what is a weaker supply side of goods and services. Too much money chasing too few goods the definition of what causes inflation. US dollar index was strengthening as inflation rose

https://www.tradingview.com/symbols...current value of U.S.,24, 1985 — 164.720 USD.Federal Surplus or Deficit (FYFSD)
2023:-1,693,725
2022:-1,375,920
2021:-2,775,350
2020:-3,132,456
2019:-983,588
Anyway going round and round ultimately there’s very little room to increase defense spending unfortunately.
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Not that different to 2019 considering there's a war or several going on, but this is all irrelevant since if the national debt was 50% of GDP lower because the banks hadn't f'ed up, then the amount being paid out on interest would be much lower and hence the deficit would be lower and let's face it, having a debt figure 50% lower would do far more for the strength of the currency then any slight spending alterations at this stage.

https://tradingeconomics.com/united-states/government-budget 1727806925721.png

And for what it's worth, the GDP is growing, better than in 2019 in fact:
https://tradingeconomics.com/united-states/gdp 1727807113859.png
https://tradingeconomics.com/united-states/gdp-growth-annual 1727807193095.png
 

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