In the grand scheme of things, the military serves as the backbone of a country's economy by protecting its borders, resulting in a tranquil environment that can drive investment and corporate growth. Russia, the United States, and China have some of the greatest military budgets. In truth, the United States leads in military spending, which explains the sophisticated weapons and big number of people joining the military. Military history extends back to the 9th century, when soldiers utilized bows and arrows. In their wars, the Egyptians utilized arrows. The Chinese came up with a cross bow in 500BC and used it in the middle age wars. In the 10th century, the introduction of gun powder strengthened most of the armies and this led to the introduction of the European fire ships in the 16th century. The governments of most of the countries across the globe have come up with fiscal policies aimed at raising funds of which a percentage is channeled to the military. Some of these fiscal policies include increased corporate taxation, increased value added taxes and imposition of tariffs. This paper primarily focuses on the macroeconomics for the military.
Body
Supply and Demand
The military is an integral part of any country, in that it plays an instrumental role in ensuring that the country is protected from various attacks. Militaries such as the U.S., French and British militaries are involved in peace keeping missions in some of those countries that have been affected by civil wars. The U.S. army is the largest in the world and has the largest spending. The U.S. military is spread out across the globe making it one of the most respected army in the world.
Some of the requirements needed for joining the U.S. army includes one has to be a U.S. citizen or a resident alien, be between the ages of 17-34. Seventeen-year olds need parental consent. One also needs a high school diploma and be with no more than two dependents. Take and pass the Armed Services Vocational Aptitude Battery (ASVAB) test. One also has to pass a Military Entrance Processing Station medical exam.
GDP and Real GDP/Fiscal Policy and Federal Budget
The U.S. GDP grew by 1.6% in the fourth quarter of 2017 and this was as a result of the growth in the employment opportunities in the country. The strengthened GDP was also attributed to the increase in the number of investors in the country and the peace that the country has since enjoyed since the 2001 terror attack. The current GDP is the highest in the country’s history. Just like the GDP, the unemployment rates have also reached an historical low. A secure country will always provide a country an opportunity for growth (Gentilucci 56-77). The military has is primarily involved in the protection of the U.S. boarders and this allows for investments and business to run smoothly in the country.
In the year ended 2015, the money that was set aside for military spending stood at $598.5 billion and this represented 56% of the federal spending (Military Spending in the United States web). The U.S. president, at the start of February 2017, signed an executive order that focused on increasing the military spending. Debate is on the congress table, on whether to increase the military spending or to maintain it at the current level. As of 2010, a Congressional Budget Office report an active U.S. soldier receives on average $99,000 per years and this includes pay and benefits, with 60 percent of the total being non-cash compensation.
International Trade
International trade is a key contributor to a country’s economy (Teichmann 98). Through international trade, a country gets revenues that it uses in the running of its services. An enhanced international trade implies that a country will generate more revenues, and one of those areas that will significantly benefit will be the military. A portion of the military budget comes from the revenues collected from the international trades.
Globalization has been enhanced with advancement in the levels of technology (Teichmann 44). Through globalization, countries have found it easier to conduct trade among themselves and this has in return strengthened the global economy. It should, however be noted that, some countries have criticized globalization citing that it has been the reason behind an increase in the cases of human trafficking. Globalization affects the military in one way or the other. Through globalization, most of the military get an opportunity to conduct joint military operations. The U.S. military in conjunction with the Iraq military have been on the frontline in flashing out terrorists from cities across Iraq. Joint military operations have also been witnessed between Russian military and Syria’s military. This can help in fostering global peace.
Conclusion
Based on the above arguments, it is clear that the military is an integral part of any country, and it has to be allocated a budget that strengthens its operations. Factors such as international trade and globalization can be instrumental in the strengthening of the military and at the same time promoting global peace. The U.S. army is the largest in the world and has been on the frontline in the provision of its services across several countries of the world. In the future, countries will strengthen their military by increasing their spending on it as well as conducting joint operations with the successful militaries such as the U.S. and Russia.
Works Cited
"Military Spending in the United States." National Priorities Project. N.p., n.d. Web. 30 Apr. 2017.
Gentilucci, Eleonora. Military spending a perspective on the restructuring dynamics of the defense sector. Paris: Centre d'économie de la Sorbonne, 2012. Print.
Teichmann, Iris. Globalization. North Mankato, MN: Smart Apple Media, 2004. Print.
