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Is US grand strategy self-defeating? Deep engagement, military spending and sovereign debt

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  • Carla Norrlof

    (University of Toronto, Canada)

  • William C. Wohlforth

    (Dartmouth College, USA)

Abstract

Questions regarding the economic consequences of US grand strategy have gained new salience. This article provides an empirical test of the relationship between US military expenditures and public debt and clarifies the real constraints the US faces issuing debt. Neither results from the statistical analysis nor the economic theory of sovereign debt support the retrenchment position regarding the impact of military spending on public debt (1973–2015). Tax cuts are the most significant determinant of debt not military spending, social benefits or interest payments. Evaluating new hypotheses about alternative mechanisms through which military spending may damage the economy remains a priority.

Suggested Citation

  • Carla Norrlof & William C. Wohlforth, 2019. "Is US grand strategy self-defeating? Deep engagement, military spending and sovereign debt," Conflict Management and Peace Science, Peace Science Society (International), vol. 36(3), pages 227-247, May.
    • Handle: RePEc:sae:compsc:v:36:y:2019:i:3:p:227-247
    DOI: 10.1177/0738894216674953
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    References listed on IDEAS

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