Lack of Trust! The Economic Theory of 'Avoiding Major Losses' Leads to Global Increase in Military Spending, Says Nikkei

Reported 11 months ago

During the Cold War, the US and the USSR signed the Strategic Arms Limitation Treaty (SALT) and Intermediate-Range Nuclear Forces Treaty (INF) to increase military transparency, but these efforts became futile due to the Russia-Ukraine conflict. In a climate of mistrust, countries are escalating military spending, with global military expenditures reaching a record high of 2.1999 trillion US dollars (about 351 trillion Japanese yen) in 2023. The rise is attributed to the economic game theory of 'avoiding major losses' that sparks intense competition among nations.

Source: YAHOO

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