Originally posted by el freako
I think that america's fall from 'hyperpower' status will be exacerbated by the fact that it's spending too much on it's military - the US accounts for around 30% of global GDP (estimated using exchange rates) but 45% of world defence spending.
This means that other countries have more resources to devote to investing in their economy and that any future arms race between the major powers will hit the US hardest.
For example, if China and India grow as expected over the next 20 years (China going from 53% of the US to 74%, India from 25% to 40%) then even if they limit their defence spending to the same share of GDP as it is now the US is going to have to raise their spending from the current 4.3% to 6.2% just to keep the ratio between it's spending and theirs the same.
I think that america's fall from 'hyperpower' status will be exacerbated by the fact that it's spending too much on it's military - the US accounts for around 30% of global GDP (estimated using exchange rates) but 45% of world defence spending.
This means that other countries have more resources to devote to investing in their economy and that any future arms race between the major powers will hit the US hardest.
For example, if China and India grow as expected over the next 20 years (China going from 53% of the US to 74%, India from 25% to 40%) then even if they limit their defence spending to the same share of GDP as it is now the US is going to have to raise their spending from the current 4.3% to 6.2% just to keep the ratio between it's spending and theirs the same.
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