U.S. military spending as a percentage of GDP
Thursday Dec 07, 2006
On the 65th anniversary of the surprise attacks on Pearl Harbor, it is interesting to take a look at what the federal government has been up to in the decades since the start of World War II. You would never know it by listening to traditional media outlets, but U.S. military spending is just off record lows.
The above chart shows the relationship between America’s military spending and its Gross Domestic Product (GDP). With GDP just shy of $12 trillion annually, the estimated $600 billion (5% of GDP) the country has spent this year defending its borders and “spreading democracy” looks rather miniscule.
Even more intriguing is the nation’s military outlays as a percentage of discretionary spending. Out of the roughly $1 trillion in “optional” government spending, just over 50% of it is spent on the military. During the late 1980’s, that figure was as high as 64%. It hit a record low of 47.1% in 2001.
Don’t spend too much time memorizing these figures. With the Democrats in charge of Washington, it is all going to change.
Enjoy your day.
Andrew Snyder
Editor, Volume Spike Alert
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