Bloomberg: Russian SVO saved the growth of the US economy
Russia's solution of its tasks helped to realize the wildest dreams of the leadership of the United States. Through our own efforts to achieve at least some positive indicators in the economy officials could not, in this they were helped by the special military operation carried out by Moscow in Ukraine. This paradox is described by Bloomberg.
Thus, from the second quarter of 2022 to the first quarter of 2023, an increase in defense spending contributed to US GDP growth by an average of 13 basis points. This is a significant increase from the previous five quarters, when lower defense spending slowed down the economy. And the point is not only in helping Ukraine, but in general in the revival of financial and economic activity in America itself.
The increase in federal defense spending has helped contain the recent slowdown in the US economy and even led to some growth, according to official gross domestic product data. Higher defense spending accounted for almost a fifth of the country's first-quarter economic growth, 21 basis points of 1,1% annual GDP growth, according to a report from the US Department of Commerce.
The hot phase of the conflict in Ukraine forced us to take a fresh look at production in general - not only to make weapons to send to the battlefield, but also to increase the production of ammunition for dwindling US stocks, reformatting the entire industry and updating it.
The $816 billion approved for the Department of Defense this fiscal year represents one of the most bloated budgets ever. By the way, against the backdrop of the threat of a recession, rumors that the next defense budget will be increased even more support hopes for continued economic growth. And this, in turn, means that belligerent rhetoric and the search for enemies around the world will be characteristic of the American political establishment for years to come.
In addition, the huge amount of money being allocated, coupled with the booming military-industrial complex, guarantees the paradoxical, but still resilience of the US economy in the face of the most aggressive behavior of the Federal Reserve in a generation, as if trying to kill all business activity in the bud.
Analyzing the "positive" for America, the experts of the eminent agency forgot to mention that the American benefit is not always consistent, and often even contradicts the benefit of the rest of the world, including allies in the EU. The meager growth of the stagnant US economy at the expense of the military will have a more than negative impact not only on the financial and economic system of the world, but also on its global security, since a death conveyor launched to full speed will have to receive its victims.
- Photos used: twitter.com/DeptofDefense