The military-industrial takeover

The frenzy of military spending seems to have gripped several parts of the world once again. Numerous states are preparing to pour billions — if not trillions — of dollars into this non-productive sector of the economy, which not only exacerbates environmental degradation and ecological disaster but also fuels conflicts, wars and military tensions. 

Such expenditures contribute significantly to the displacement of millions, the destruction of cities and towns and widespread human rights violations.

Despite all this, the global community appears unwilling to learn any lessons. In Europe, the spectre of Russian President Vladimir Putin is being hysterically invoked to justify an unprecedented surge in military budgets. 

In the US, President Donald Trump has also advocated for a dramatic increase in defence spending, contradicting his own claims of opposing the military-industrial complex, which he once identified as an adversary to his ‘Make America Great Again’ agenda. 

Meanwhile, India, China and other countries seem eager not to lag behind in this reckless arms race, while Russia continues to funnel vast resources into the inferno of Ukraine, bolstering its defences in anticipation of future conflicts and military confrontations.

EU member-states, which have long pursued harsh austerity measures, have now proposed raising a staggering 800 billion euros for what they call the ‘ReArm Europe Plan'.

According to a March 4 press release from the European Commission, EU states are prepared to contribute to this enormous military buildup. The statement reads: "The first part of this ReArm Europe plan is to unleash the use of public funding in defence at the national level. Member States are ready to invest more in their own security if they have the fiscal space. And we must enable them to do so. This is why we will shortly propose to activate the national escape clause of the Stability and Growth Pact. It will allow Member States to significantly increase their defence expenditures without triggering the Excessive Deficit Procedure. For example: If Member States would increase their defence spending by 1.5% of GDP on average, this could create fiscal space of close to EUR 650 billion over four years. The second proposal will be a new instrument. It will provide EUR 150 billion of loans to Member States for defence investment.”

The major European powers seem to be leading this initiative. Germany — whose former chancellor Angela Merkel once proudly championed Europe’s social spending — now appears to be reversing course. The outgoing German government is reportedly moving swiftly to remove constitutional restrictions on military expenditure, paving the way for lavish spending in this parasitic sector of the economy. Meanwhile, British Prime Minister Keir Starmer has vowed to increase the UK’s defence budget from 2.3% of GDP to 2.5%, with an ultimate target of 3.0%.

Europe has historically led the world in social welfare spending. Former UK chancellor of the exchequer George Osborne revealed in 2014 that Europe accounted for just over 7.0% of the world’s population, 25% of its economy and 50% of global social welfare expenditures. Similarly, a 2012 World Bank report titled 'Golden Growth: Restoring the Lustre of the European Economic Model' noted that Europe was responsible for 58% of the world’s total social protection spending.

This robust social spending significantly improved living standards across the continent, benefiting millions of citizens. Almost all European countries provide free schooling, with many extending this benefit to university students as well. Quality healthcare is accessible to all, either entirely free or at a reasonable cost. The state also facilitates housing and employment opportunities through social protection budgets. Countries such as Sweden, Denmark, and Norway have often been described as 'heavens on earth' due to their strong social welfare policies.

However, the European ruling elite now argues that the ‘bloated’ welfare state must give way to a ‘warfare state.’ Their justification? They claim that an irredentist Russia is determined to destroy Europe, capturing country after country. For them, Moscow poses an imminent threat to the Baltics after devastating Ukraine. To counter this supposed menace, they insist that Europe must militarise, committing billions to bombs and bloodshed. They argue that without new tanks, missiles and nuclear weapons, Russian warships could soon be visible from the shores of Dover.

On the other side of the Atlantic, military mania is equally rampant. Trump has demanded that multiple nations raise their defence budgets to 5.0% of GDP. The US is already the world’s largest military spender. According to the Peterson Institute for International Economics (PIIE), the US has held this position since the 1940s, spending $880 billion on defence in 2023 — equivalent to 3.36% of GDP. This is nearly double the combined military spending of China and Russia. Nato, as a whole, spent $1.28 trillion on defence in 2023, amounting to approximately 54% of global military expenditures (adjusted for inflation). If all Nato members had spent 5.0% of GDP on defence in 2023, their total expenditures would have exceeded actual global military spending. The US share of Nato’s expenditures would have decreased from 68.7% to 53.8%.

Trump’s push for increased military spending is likely to embolden other warmongering states. In 2023, only nine countries spent 5.0% of GDP or more on defence: Algeria, Armenia, Israel, Lebanon, Oman, Russia, Saudi Arabia and South Sudan. According to PIIE, most of these states have been engaged in active conflicts. 

“Five of these are authoritarian petrostates, unencumbered by competitive elections or the need to tax their populations to fund their military largesse. North Korea and Eritrea — two totalitarian dictatorships — are not included in the SIPRI data but likely far exceeded this threshold as well. The US itself surpassed the 5.0% threshold for much of the cold war and nearly reached it again during the global financial crisis, when GDP shrank and the country was waging wars in Afghanistan and Iraq.”

This escalation in military spending comes at a time when masses across the world are facing severe financial hardships, unprecedented in recent decades. For example, Euronews reported last year that homelessness has surged across Europe over the past decade. In France and Germany, the number of homeless people has more than doubled. In the UK, the government has even slashed funding for pensioners, the elderly and disabled citizens. Meanwhile, the Trump administration has been waging relentless attacks on the working class, leaving tens of thousands unemployed.

Critics argue that, while this massive military spending may excite warmongers and arms manufacturers, it will only worsen the struggles of those at the bottom of the socioeconomic hierarchy. The working class in North America and Europe is still reeling from the devastating impact of the Covid-19 pandemic, which resulted in millions losing their jobs and homes.

Just as the pandemic exacerbated economic inequalities, this new wave of militarisation will only enrich those with stakes in arms manufacturing and oil conglomerates. For ordinary citizens, it represents a surefire path to deepening multidimensional poverty — an affliction already rearing its monstrous head in parts of Europe and North America.

Disclaimer: The viewpoints expressed in this piece are the writer's own and don't necessarily reflect Geo.tv's editorial policy.

The writer is a freelance journalist who can be reached at: [email protected]