Beijing has announced increased defense spending by 12.7%, from 532.1 billion Yuan to 601.1 billion Yuan. This expenditure is valued at roughly $91.5 billion dollars, or roughly 7.2% of their declared national spending in 2011, in the near future many more billions of dollars will be allocated into defense spending. Most analysts agree that, in addition to the declared spending there are billions of undeclared Yuan being secretly spent by the Chinese government.
Chinese military spending is now only outpaced by the runaway American defense budget. Each year larger and larger Chinese contracts are being given; American defense contractors are beginning to look for sales overseas rather than here at home. That is something that needs to be prevented to protect the vulnerable American economy.
Why is this Globalization Happening?
As China militarizes the concentrations of weapons and weapon distributors will be exported to Asia. China has already consumed many industries; most manufacturing products come from China. This is a result of globalization, a s costs rose for American corporations business leaders were forced to look for economical alternatives. They discovered that assembly line jobs could be sent anywhere in the world, where they would fulfill the same quotes at a fraction of the price. Production jobs went overseas.
Now defense contractors appear to be the next to make the push west. Currently the United States is the world’s leading producer and distributor of weapons. Without the staples of guns and ammunition the domestic American economy would disintegrate in a matter of days. It is in the best interests of the America people to deal with this problem before another critical market goes over seas.
How will Defense Spending Affect the United States?
The America economy will indirectly affect the average American in countless minor ways, hindering the average man’s lifestyle. First, everyone will see a steady rise in the cost of all items. As the economy of the United States steadily weakens the dollar does as well, causing higher levels of encumbering inflation. This results in all products costing more, since money is worth less. Second, America will be slowly pushed out as the leading international nation in foreign affairs. Without the comparative muscle, many nations will abandon the United States’ protective military umbrella, favoring the Chinese sphere of influence.
America will no longer be the dominant global superpower. These long term changes will inevitably happen if the economic conditions continue along expected courses. Pax American is dwindling and will die unless decisive, innovative government action is taken.