Does the U.S. Government Make a Profit from Spending Trillions on the Military?

Introduction
When discussing the U.S. military budget, it's important to clarify the scale and funding sources. The recent military budget of around $780 billion still represents a significant financial commitment for the U.S. government. However, does the government actually make a profit from such vast expenditures?

Understanding the U.S. Military Budget

The U.S. Defense Department (DoD) budget for 2023 is about $801 billion. This figure, while substantial, should be contextualized within the broader federal budget. The total U.S. federal budget for 2023 is projected to exceed $7 trillion. The DoD budget constitutes 11% of this total, indicating that the government's spending on defense is a significant but not overwhelming portion of its overall budget.

Revenues and Funding Sources

The revenue for the U.S. government does not derive solely from military spending. Individual taxpayers, small businesses, and corporations contribute significantly through various tax channels:

Tax Contributions: The U.S. tax system generates vast sums of revenue. For example, the federal individual income tax for a lower middle-class income individual might be around $800-$900 per month. This amount doesn't include other taxes such as property tax, sales tax, and various excise taxes and fees. Nationally, these taxes collectively contribute over $3 trillion annually. Tax Revenue from Special Pricings: Besides direct taxes, other fees also contribute to government revenue. For instance, park entry fees, resource lease payments, and usage fees support various government agencies, including the U.S. Department of the Interior.

The Reality of Military Spending and Government Revenue

While the U.S. spends a significant amount on its military, the financial impact is not a one-way street. The government's revenue streams are far broader than just military spending:

Infrastructure and Healthcare: Despite the high military spending, the disrepair of American infrastructure and the shortcomings in healthcare continue to be significant issues. The U.S. ranks poorly in international comparisons of infrastructure quality and healthcare outcomes. Economic Growth: Genuine economic growth is another major revenue generator for the government. Strong GDP growth and robust corporate tax revenues can significantly contribute to the country's fiscal health.

Conclusion

The U.S. government does not make a profit from spending trillions on the military. Instead, the revenue from diverse sources such as individual and corporate taxes, special pricing mechanisms, and various federal agency fees supports the entire government operation, including defense spending. The reality is that while defense spending is high, other government priorities, such as infrastructure and healthcare, also require significant investment.

Understanding these broader financial implications is crucial for a comprehensive assessment of the U.S. government's budget and priorities.