The ongoing great-power rivalry between the United States and China has profound implications for ordinary Americans, particularly in terms of economic freedoms and inequality. Van Jackson and Michael Brenes from Foreign Policy argue that this rivalry exacerbates existing economic disparities, as U.S. defense spending has surged dramatically—from $639.86 billion in 2016 to $800.67 billion in 2021, with projections indicating it could reach $1 trillion within the next two years. This escalation in military expenditure occurs against a backdrop where over 30% of Americans earn less than $15 per hour, highlighting the stark contrast between defense priorities and the economic realities faced by many. [f1e3b571]
The COVID-19 pandemic has further intensified these challenges, pushing an estimated 160 million people into poverty globally. Despite the significant increase in defense spending, Jackson and Brenes point out that military investments create fewer jobs compared to other sectors, raising questions about the effectiveness of such spending in promoting economic growth. They argue that the current approach, termed 'national security Keynesianism', prioritizes military spending over social welfare initiatives, ultimately harming economic democracy. [f1e3b571]
This perspective aligns with insights from Julia Gledhill of the Stimson Center, who has noted that the Pentagon's budget has nearly doubled since the early 2000s, raising concerns about the sustainability of such expenditures. The recent approval by the Senate Armed Services Committee for a $25 billion increase in military spending reflects a broader trend of prioritizing defense budgets amid rising global tensions, echoing Cold War strategies from the Biden administration. [f777bd4b]
Todd Harrison's analysis further underscores the fiscal implications of this military focus, revealing that the federal budget deficit is projected to exceed $1.9 trillion in FY 2025, with defense spending growing at a rate that outpaces the economy. He emphasizes that while U.S. defense spending is currently deemed affordable, it requires careful prioritization over non-defense programs to avoid exacerbating the national debt, which now exceeds the size of the economy. [4fd1027a]
As lawmakers continue to navigate the complexities of national security and economic stability, the balance between military expenditure and the welfare of ordinary Americans remains a critical concern. Jackson and Brenes conclude that the current trajectory of great-power competition cannot generate economic equality, urging a reevaluation of priorities that places economic democracy at the forefront. [f1e3b571]