USA profits from wars around the world in details
No one can
deny that Biden signed the National Defense Authorization Act, allocating
$816.7 billion to the U.S. Defense Department in 2022. The U.S. spends hundreds
of billions of dollars both domestically and internationally to advance U.S.
interests, but some of the biggest beneficiaries are also some of the world’s
largest corporations.
According to
the Department of Defense (DOD), the top U.S. military contractors include
Lockheed Martin Corporation, Raytheon Technologies Corporation and General
Dynamics Corporation. Together, those companies account for $297.68 billion in
market capitalization.
Raytheon’s
total revenue was $67.1 billion and the U.S. accounted for nearly 40% of that
total, purchasing $25.4 billion from Raytheon.
The arms
business goes worldwide. The United States is the largest exporter of weapons,
with its top buyers being Saudi Arabia, Japan and Australia, according to the
Stockholm International Peace Research Institute.
When war
breaks out, military contractors can expect a rise in sales. Ever since
Russia’s invasion of Ukraine in 2022, the U.S. has provided Ukraine with $44.2
billion in military assistance. Military contractors benefit from this
arrangement as the U.S. buys military equipment from these institutions and
sends the weaponry to Ukraine.
Read more: US total aid to Ukraine in details
For example,
in Sept. 2022, the DOD worked quickly to replace $1.2 billion in contracts to
replenish U.S. military stocks for weapons sent to Ukraine. The breakdown
includes about $352 million in funding for replacement Javelin missiles, $624
million for replacement Stinger missiles, and $33 million for replacement
HIMARS systems. The Javelin missiles are manufactured exclusively by Javelin
Joint Venture, a partnership between Raytheon and Lockheed Martin.
The current
military operation in Gaza is a treasure chest for military contractors whose
revenue increases as the U.S. turns to them to replenish their stocks.
When bombs
are falling, arms industry profits are rising. As war rages in Gaza, we look at
how the defence sector is both benefiting from the violence and struggling to
keep up. Even before the latest flare-up, global defence spending was rising to
Cold War levels – largely due to the war in Ukraine, but also due to a
perceived threat from China's growing military prowess. In 2022, military
outlays rose for the eighth straight year, hitting $2.24 trillion.
Read more: 6 reasons why China is the biggest threat to U.S