U.S.** Changes in Debt and Military Spending.
In the world, the United States is one of the most numerous powers in the world, and eleven aircraft carriers make up a huge fleet. However, behind these powerful armies, there is one thing that worries: the debt of the United States is as high as 34 trillion, which is already the largest debtor country in the world. The United States, on the other hand, spends $800 billion a year on its military, more than all the other countries in the world combined. So, how can the United States have the ability to have so much navy and military spending?
First, let's look at the situation with US Treasuries. According to recent figures, the U.S. has a debt of 34 trillion, which is higher than the U.S. itself's own overestimated gross domestic product. Even more worrying is that the US tax revenue is about 4 trillion a year and it is still decreasing. This means that it will take the Americans eight years to repay their debts, and in fact, the United States can no longer afford to pay that much debt. Although the United States can raise funds through bond issuance, this can only be a stopgap measure and cannot fundamentally solve the problem.
At the same time, the United States is ramping up military spending. Statistics show that U.S. spending will exceed 800 billion yuan in 2023 and increase to 886 billion yuan in 2024. This number is 3Eight times the expenditure of China's affairs, which is more than the other nine member states combined. However, behind such huge military expenditures is a huge debt. It is simply impossible for US taxes to support such military spending, so who should bear the US military spending? Isn't this the power of the United States itself?
Who pays for the US military spending?
So, who exactly pays for the US military spending? The United States itself spends its military on debt and relatively small tax revenues, and the responsibility for the United States military is shared among several other countries. First, American creditors like Japan, who prop up U.S. military spending through U.S. bonds. In addition, allies like South Korea, because the United States has troops there, they have to give the United States some financial assistance.
The United States spends on its military affairs, not only by creditors and allies, but also by parts of the Middle East occupied by the United States. Because they are the world's largest energy power, the United States has deployed a large number of troops there for economic gain. Eventually, oil flows into the world and is bought by other countries, so U.S. military spending is financed to some extent.
Can the United States afford it?
While the United States has supported military spending by borrowing and sharing it among creditors and others, it is clear that this situation is untenable. America's growing debt, reduced taxes, and growing military spending are all putting more financial burden on the United States. However, even in such a serious financial predicament, the United States still maintains a large naval formation of 11 aircraft carriers. So, how exactly does the United States feed those aircraft carriers?
In fact, all countries of the world are paying for American aircraft carriers. The United States raised enough money to keep the aircraft carrier afloat by issuing Treasury bonds, borrowing from creditor countries, and collecting contributions from allies and occupied countries. Why, then, would those countries happily pay the United States? On the one hand, it relies on the United States to guarantee its military force, and on the other hand, it wants to reduce its own military spending. But from another point of view, the United States may have some benefits for having a powerful aircraft carrier, for example, in terms of finance and security.
However, such a situation cannot be sustained. The U.S. economy is untenable, with high levels of debt, surging military spending, and declining tax revenues. While creditors and debt-sharing countries still share some of the military spending for the United States, this situation is unlikely to last long. So the U.S. must seek a more sustained resource for military spending, or resize its navy to fit its new financial situation.
With this in mind, the US aircraft carrier is actually bought by all countries in the world together with money. Although the current US military spending is supported by borrowing and sharing of funds, this model is not sustainable. With high debt and declining tax revenues, the United States faces a real problem: to seek more sustainable resources for defense spending, or to reformulate its military strategy.