2-node-supercomputer.net 2020-07-13

Is the US outspending itself?

In chapter 4 (5?) of his book "Has China Won?", Mahbubani argues that the US are spending more on their military than they can afford, similar to the Soviet Union towards its end.

Is it true that the US military expenditures are more than they can afford?

Let's compare to the past. Typically, military expenditure is expressed as a percentage of GDP. In that respect the US has come down from cold-war era spending ~10% of GDP to ~5%. This seems to suggest that Mahbubani is not a mathematician.

On the other hand, GDP can be increasd by spending more and increasing debt. Therefore, we should factor in the debt in the calculation. Specifically, subtract new debt from GDP, and use that as the denominator. Will it make a difference?