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GDP includes government spending. If a country spends a lot of money on military, that reflects in GDP figures.
by SirHumphrey 2y ago
GDP includes government spending. If a country spends a lot of money on military, that reflects in GDP figures.
- credit_guy 2y agoThat's correct, but it's not that material. The US GDP is about $27 trillion, the military spending is about $1 trillion, or about 3% of the GDP.
- VHRanger 2y agoCorrect. But military spending only *grows* GDP if the money is invested properly. In, say, research/infrastructure/training, etc. Malinvested money will pump GDP for a few years before growth stops and potentially reverses.