Скачать или смотреть How does military spending affect the economy?

Military spending may now days be considered a political issue but what people don’t realize is that it is as big of a political issue as it is economic. The amount of money spent on the military is staggering and no doubt when such a massive sum of money is spent by the government it has massive consequences both negative and positive, but we must not think of military spending as a linear or one-dimensional factor, the type of military spending and the attitude of the military can also affect the economy of the country.
In this video, we are going to going to discuss not only the positives and negatives of military spending but also what can make military spending a disaster for a countries economy.
WHO SPENDS THE MOST?
It is no surprise to most people with access to the internet or to any form of media that the U.S leads the bunch In terms of military spending but as we go down the ladder the findings can get more interesting. For example, by far the most interesting is how Saudi Arabia a country with a population of 34 million is capable of spending 62 billion dollars, almost 8% of its GDP and the 5th largest military spender, while a country like India with a population of 1.38 billion people spends 72 billion dollars only 10 billion more than Saudi Arabia, roughly 2.4% of its GDP and the 3rd largest spender, another anomaly is japan the 3rd largest economy in the world but only the 9th largest military spender spending 47.6 billion $ in 2019 but as we all know there is a reason for that which is far too long to explain.
WHY SPEND ON THE MILITARY
The government's only primary function is that of defense, at first, that statement may seem wrong but think of it, almost all of the other job's of a government can be outsourced from tax collection to policy planning but the people would likely not to want the protection of their nation to be at the hands of a corporation as absurd as such a situation occurring might seem this has actually occurred on the sub-continent of India when the East India company a corporation controlled an entire sub-continent to know more on this topic I highly suggest you go watch my video on the economics of the East India Company. For more proof, Adam Smith often considered the father of economics said that the government's primary role is that of defense of the nation and therefore taxation for this purpose is justified.
DEBTS ROLE IN FINANCING THE MILITARY
Almost all of the countries in the world have a budget deficit these day's and a part of the blame can be rightfully put on military expenditure, The reasoning is that when debt increases the burden of repaying the debt i.e. interest payments increases and therefore ats as a strain on economic growth, however, there are certain exceptions, for example, the U.S. has arguably the best position for debt repayment they are considered the world's most influential economy therefore almost everyone is willing to lend to them astronomical amounts, they can liquidate their debt if ever they are in a dire situation since almost all of the U.S. debt is issued in U.S. dollars and historically the interest they pay on their debt has been extremely low. Therefore the impact of extensive military spending may not be as horrible as many believe. However other nation's are not as lucky as the U.S. especially developing countries, if developing countries were to prioritize military spending over infrastructure investment and other types of public spending it could seriously affect the living conditions of the people that already are suffering and may hinder the rapid economic growth that is required for the country to escape poverty. An example of this is Pakistan where the military has a surprisingly high amount of influence in the government and therefore the military budget is relatively high, during military coups and times of military government, military spending can range from 7% to 10% of its GDP however due to Pakistan's gradual return to democracy their military spending has stabilized at 4% which is still not normal but an improvement none the less. A more extreme example of this conundrum is North Korea where military spending takes precedent over all else and this has clearly had an effect on the people's living conditions.

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