Wednesday, June 2, 2010

World military spending soars in spite of recession

Canadian Leopard 2 tanks south-west of Kandahar City, 15 May 2010.At a time when governments across the world have been borrowing heavily in order to spend, it seems the defence industry has benefited more than most.

Worldwide military expenditure reached $1,531bn (£1,040bn) last year, a 5.9% rise in real terms from 2008, according to Stockholm International Peace Research Institute (Sipri).

But growth in defence spending is not a new phenomenon.

Last year, while deficits ballooned in many countries, the world spent almost 50% more on arms and military operations than it did in 2000, Sipri's yearbook reveals.

Rather than curbing spending on arms, it seems many governments have deemed it dangerous to risk job cuts in the defence sector at a time of recession.

"Many countries were increasing public spending generally in 2009, as a way of boosting demand to combat the recession," according to Sam Perlo-Freeman, head of the military expenditure project at Sipri.

"Although military spending wasn't usually a major part of the economic stimulus packages, it wasn't cut either."

"For major or intermediate powers such as the USA, China, Russia, India and Brazil, military spending represents a long-term strategic choice which they are willing to make even in hard economic times."

Smaller countries in central and eastern Europe, meanwhile, cut military spending in line with severe budget cuts across the board as they struggled to reduce their large deficits.

The US remains the biggest spender, accounting for some 54% of the total, having increased its military spending by $47bn in real terms, Sipri said.

Since 2000, the US has increased military spending by 63% in real terms, according to Sipri.

Other large countries, both developing and developed, also raised military spending last year, Sipri found.

But spending rose at a much faster rate in Asia and in islands in the Pacific Ocean, where the rate of growth was 8.4%.

And when measured as a proportion of GDP, military expenditure is greater in the Middle East than anywhere else in the world. ...

via BBC News - World military spending soars in spite of recession.

Fewer resources + more people = more war.

3 comments:

Ann said...

Late 20th century/early 21st century
American Capitalism:

Fewer but more valuable resources (increased scarcity -> increase prices) + more people (-> more taxpayers -> more revenue) = more war -> more profits for the military industrial complex. ... -> for more resources bought with more tax money -> for the "endless war"
...

Ann said...

This is from:
Tammerlin Drummond of the Oakland Tribune
"Plenty of money for war, but far too little to help nation's jobless"
06/01/2010

" ... 6.7 million Americans who have been jobless for 27 weeks or longer. ... In California, 800,000 of our fellow residents have been out of work for 27 weeks or longer. .... California [has a] 12.6 percent unemployment rate. .... Nearly 19,000 jobs cut in the construction industry. Almost 15,000 in computer tech, engineering and other professional and business services. Another 8,000 in finance and real estate. Ten thousand employees cut from local government and public schools. ...."

YET!!!!!

"Congress [approved] ... another $60 billion for the wars. ..."

At the same time "Congress also cut $24 billion in aid to the states that would have helped cover Medicaid expenses — and let health insurance subsidies for laid-off workers expire."

Nothing like a citizen-friendly country, huh?

Ann said...

Ok, ok, I promise this will be my last, but I had to add it, because it hints how citizen-friendly is our wealthy and powerful government:

This is from: http://thebreakroom.gather.com

Senate Chooses Vacation Over Unemployment Extension Bill
June 01, 2010 04

Once again, the US Senate has chosen to ignore the plight of thousands of American citizens and put its own schedule of precious vacation time above the needs of the unemployed.

On Friday, the House of Representatives passed bill HR 4213, aka the American Jobs and Closing Tax Loopholes Act of 2010. This bill would extend the filing deadline under the current system of federally-subsidized unemployment insurance benefits, which allows for up to 99 weeks maximum extended benefits under 4 tiers of extensions. Other provisions in the bill include a COBRA extension and closing certain tax loopholes for individuals and corporations.

This bill would *not* create additional benefits beyond the 99 weeks in the form of a Tier V or similar extension.

According to Senate Majority Leader Harry Reid (D-NV) last week, the Senate would not act on this same essential bill until after the Memorial Day recess, which is currently underway. The Senate resumes its chamber on this upcoming Monday, June 7.

This means that the Senate is once again - again! - letting the previous two-month extension expire. They had two months this time to get something done and nevertheless they fail to produce before the deadline.

Perennial procrastinators, they - if only they could be fired from their jobs such as happens with unproductive employees (hint, hint, voters).

In short: business as usual on the Hill.