As governments across the globe scramble to bolster their military might in response to geopolitical tensions, one line item is growing faster than nearly any other: defenxe spending.

In 2021 alone, global military budgets surged to a staggering $2 trillion, according to the Stockholm International Peace Research Institute (SIPRI). This enormous figure represents not only an arms race between great powers like the United States and China but also a worrying trend for many smaller nations caught in the spiral of militarization.

And yet, as politicians and defense companies celebrate ever-larger military budgets, there’s a quieter, more devastating story unfolding — one that affects ordinary citizens every day: for every dollar funneled into weapons and war machines, there’s a dollar not spent on hospitals, schools, affordable housing, or addressing the climate crisis.

More Guns, More Debt: The Price We’ll All Pay

Let’s be clear: this spending isn’t coming out of nowhere. Governments don’t have vaults of untouched money ready to be spent on missiles.

Instead, they borrow. And they borrow heavily.

Data from the International Monetary Fund (IMF) and OECD shows that for every 1% increase in military spending as a share of GDP, a country’s debt-to-GDP ratio increases by 0.1 to 0.3% over five years. In other words, every time politicians vote for more tanks, the national debt goes up — debt that our children and grandchildren will be forced to repay.

Take the United States, for example. Its defense budget now exceeds $800 billion annually, more than the next nine largest military spenders combined. Yet, the country also faces a crumbling healthcare system, crippling student debt, and record homelessness — crises that could be addressed with just a fraction of that military budget.

What We Give Up for Guns: The Crowding-Out Effect

What gets lost in the rush to fund the next generation of drones and missiles? The things that actually improve people’s lives.

Studies by the World Bank and OECD show that when defense spending surpasses 3% of GDP, investments in healthcare, education, and infrastructure fall by up to 0.3% annually.

Consider that the UK, despite being the sixth largest economy in the world, is facing an NHS crisis with record-long waiting lists, underfunded schools where teachers are striking for better pay, and crumbling rail networks. Yet, the UK government continues to commit to meeting — and possibly exceeding — the NATO benchmark of 2% of GDP for defense spending, while the country’s social fabric frays.

A single F-35 fighter jet costs over $100 million — enough to build multiple schools, fund life-saving medical equipment, or retrofit thousands of homes to be energy efficient. But instead of making those investments, governments often double down on defense — even in times of peace.

Security or Well-being — Do We Have to Choose?

We are often told that "security comes first" — that without military might, everything else is meaningless. But that framing presents a false choice.

A society is not truly secure if its people can’t access healthcare, education, or affordable housing. It is not secure if children are growing up in poverty, if families can't pay for basic needs, or if the next pandemic finds us with an underfunded public health system.

In fact, many of the gravest security threats we face today — climate change, pandemics, economic inequality, social unrest — cannot be solved with bombs or battleships. Investing in people, in resilience, in public health, and education is as much a matter of national security as any missile shield.

The Economic Myth of Military Spending as a "Stimulus"

Supporters of large military budgets often claim that defence spending stimulates the economy and creates jobs.

While it’s true that military spending can generate jobs, it is among the least efficient ways to do so. Studies from leading economists show that a dollar spent on education, healthcare, or infrastructure creates significantly more jobs and economic activity than a dollar spent on the military.

A 2019 analysis by Brown University’s Costs of War project found that $1 billion spent on healthcare creates nearly twice as many jobs as the same amount spent on defense. Investment in clean energy and infrastructure also vastly outpaces defense spending in terms of job creation and economic returns.

Military spending may generate temporary employment in arms factories, but it does little to address long-term economic inequality, environmental degradation, or crumbling public services.

So, Who Benefits from Ballooning Defence Budgets?

If ordinary citizens aren’t reaping the rewards, who is?

The answer is painfully clear: defense contractors and arms manufacturers.

Companies like Lockheed Martin, BAE Systems, Raytheon, and Boeing rake in tens of billions of dollars in government contracts, while lobbying hard to keep military budgets growing year after year. In 2021 alone, the top five U.S. defense contractors received $150 billion in federal contracts.

As they profit, citizens pay — through higher debt, fewer services, and widening inequality.

What Should Governments Do?

Of course, national security matters. No one argues that countries should leave themselves undefended. But security must be balanced with the well-being of citizens.

Governments must pursue smarter, more balanced strategies, including capping military spending at reasonable levels is essential to prevent open-ended commitments that escalate endlessly, straining national budgets. At the same time, increasing public oversight and transparency in defense procurement helps curb waste, fraud, and corruption, ensuring that resources are used efficiently. A more balanced approach to security also involves reallocating a portion of military budgets toward essential public services such as healthcare, education, housing, and climate action—investments that provide long-term stability and well-being for societies. Prioritizing diplomacy and conflict prevention proves to be not only more cost-effective but often more successful in maintaining peace than continuous military preparedness. Additionally, fostering global cooperation on shared threats, such as pandemics and climate change, rather than framing every challenge as a military issue, leads to more sustainable and effective solutions for global security.

A Final Thought: Rethinking What Security Really Means

As the world faces climate breakdown, global inequality, and rising authoritarianism, it is time to ask ourselves: What does security really mean in the 21st century?

Is it a fleet of nuclear submarines? Or is it healthy populations, educated citizens, and resilient communities?

A nation can have the most powerful army in the world and still be deeply insecure if its people are struggling to survive. Security without justice, health, and opportunity is no security at all.

In this critical moment, as military budgets balloon and social crises deepen, we must demand better choices from our leaders.

Because we cannot bomb our way to a fairer, healthier, and more sustainable world — but we can build one, if we invest wisely.

Ramil Abbasov is a climate change and sustainability expert with over 14 years of experience in public finance management, climate finance, greenhouse gas emissions accounting, policy research, and economic analysis. He has worked closely with international organizations—including the United Nations Development Programme and the Asian Development Bank—to integrate climate risk assessments and mitigation strategies into financial governance frameworks.

Currently, Ramil serves as a Research Assistant at George Mason University, contributing to the NSF-funded Community-Responsive Electrified and Adaptive Transit Ecosystem (CREATE) project through quantitative data analysis and stakeholder engagement initiatives. Previously, he held key roles at the Asian Development Bank in Baku, Azerbaijan, where he excelled as both the National Green Budget Economy Expert and the National Public Finance Management Expert, driving efforts in climate budget tagging, green economy analysis, and sustainable development policy integration.

In addition to his work with multilateral institutions, Ramil is the CEO and Founder of “Spektr” Center for Research and Development, a research organization focused on advancing climate finance, energy transition, and sustainable economic policies. His earlier career includes leadership positions such as Director at ZE-Tronics CJSC and managerial roles in the banking sector with AccessBank CJSC and retail management with Third Eye Communications in the USA.