US military spending: the real size and reasons for the overstatement

Abstract

Department of Defence (DoD) spending has decreased by 1.9-2.2 times relative to GDP and population growth since 1986, as well as the amount of military stocks and their annual purchases. The gap in military spending with Russia reduces from a nominal 12 times to a real 2.2 times by the adjusted purchasing power of currencies and share of real production in GDP. Total military, social, interest and allied payments for the US military are twice the budget of DoD, reaching $1574 billion in 2022. Social programs consume 38%, contractors get 30%, military personnel - only 4,6%, utilities - 4,3% from that total. DoD, the military-industrial companies and subcontractors employ 8,4 mln. people, DoD pays for 8,2 mln veterans and retirees, totally 6,4% of adults. 93% of the military locate in the US and support the local economy. DoD secures national industry and financial sector. Half of the military falls on the army and marines, of which ¼ are combat units, ¾ are support and management units, only 190 k. are the field combat personnel. Contractors spent half of overseas contingency operations fund, profits and inefficiencies account for 10 and 30% of total contracts, 30-45% of the contracts are without fixed price and competition.