Here’s what’s happened to US military spending in 50 years

24/7 Wall St. Perspectives

• 24/7 Wall St. reviewed US military expenditure data from the Stockholm International Peace Research Institute’s Military Expenditure Database.
• The 1980s saw the largest increase in military spending in 50 years.
• Also, Discover the “Next NVIDIA”

The United States Legislature approved the 2024 budget to include $841.4 billion for the Department of Defense (DOD), $32.4 billion for national security programs within the Department of Energy (DOE), and $438.0 million dollars in defense-related activities. Following a largely upward trend in spending, the budget has grown exponentially since the early 1970s. The 1973 budget was $81.47 billion.

The 1980s saw the fastest growth in military spending, with 1982 rising 25 percent over the 1981 budget. And the year before that, spending rose nearly 23 percent over the previous year. Although 2022 marks a record level of spending, it is not the largest share of GDP. In 2022, military spending as a percentage of GDP will be 3.45%. This is slightly lower than the average of 6 to 7 percent in the 1980s.

Here at 24/7 Wall St. takes a closer look at how much the United States has spent on its military over the years. To identify what the US has spent on the military each year for the past 50 years, 24/7 Wall St. analyzed US military spending data from the Stockholm International Peace Research Institute’s Military Spending Database, which lists the years 1973-2022. Figures are in current US dollars. We also calculated the percentage change in military spending over the previous year and spending as a percentage of GDP.

The US military budget increased significantly in the 1970s during the Vietnam War. The early 1970s brought an increase of more than 50 percent from 1965, when the US first sent troops to Southeast Asia. After the end of the Vietnam War, the 1980s brought accelerated military spending. This increase came under President Ronald Reagan, virtually tripling military spending from the Vietnam era.

By the 1990s, defense spending had stabilized or even declined in some years. But the terrorist attack of September 11, 2001 changed everything. Spending rose from there as the US engaged in the War on Terror, again increasing defense spending significantly for decades to come.

Why are we covering this?

US military spending is important for maintaining national security in an uncertain geopolitical landscape. It ensures the readiness and capability of the armed forces to deter potential adversaries and respond effectively to threats. 24/7 Wall St. looks at total military spending and spending as a percentage of GDP to get a complete picture of US military spending over the years.

Here’s a look at US military spending over the past 50 years:

1973: $81.47 billion

• Percentage change in expenses: 0.94% – #39 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.89%

1974: $89.28 billion

• Percentage change in expenses: 9.59% – #12 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.95%

1975: $92.08 billion

• Percentage change in expenses: 3.14% – #29 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.62%

1976: $94.72 billion

• Percentage change in expenses: 2.86% – #31 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.19%

1977: $104.67 billion

• Percentage change in expenses: 10.51% – #10 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.16%

1978: $113.38 billion

• Percentage change in expenses: 8.33% – #16 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.94%

1979: $126.88 billion

• Percentage change in expenses: 11.90% – #7 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.95%

1980: $143.69 billion

• Percentage change in expenses: 13.25% – #5 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.15%

1981: $176.56 billion

• Percentage change in expenses: 22.88% – #2 highest year-over-year growth
• Expenditure as a percentage of GDP: 5.65%

1982: $221.67 billion

• Percentage change in expenses: 25.55% – #1 largest year-over-year increase
• Expenditure as a percentage of GDP: 6.81%

1983: $223.43 billion

• Percentage change in expenses: 0.79% – #40 largest year-over-year increase
• Expenditure as a percentage of GDP: 6.32%

1984: $245.15 billion

• Percentage change in expenses: 9.72% – #11 largest year-over-year increase
• Expenditure as a percentage of GDP: 6.24%

1985: $272.16 billion

• Percentage change in expenses: 11.02% – #9 largest year-over-year increase
• Expenditure as a percentage of GDP: 6.45%

1986: $295.55 billion

• Percentage change in expenses: 8.59% – #14 largest year-over-year increase
• Expenditure as a percentage of GDP: 6.63%

1987: $304.09 billion

• Percentage change in expenses: 2.89% – #30 largest year-over-year increase
• Expenditure as a percentage of GDP: 6.42%

1988: $309.66 billion

• Percentage change in expenses: 1.83% – #34 largest year-over-year increase
• Expenditure as a percentage of GDP: 6.07%

1989: $321.87 billion

• Percentage change in expenses: 3.94% – #26 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.87%

1990: $325.13 billion

• Percentage change in expenses: 1.01% – #37 largest year-over-year increase
• Expenditure as a percentage of GDP: 5.61%

1991: $299.37 billion

• Percentage change in expenses: -7.92% – #1 biggest year-over-year decline
• Expenditure as a percentage of GDP: 4.88%

1992: $325.03 billion

• Percentage change in expenses: 8.57% – #15 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.97%

1993: $316.72 billion

• Percentage change in expenses: -2.56% – #8 biggest year-over-year decline
• Expenditure as a percentage of GDP: 4.60%

1994: $308.08 billion

• Percentage change in expenses: -2.73% – #6 biggest year-over-year decline
• Expenditure as a percentage of GDP: 4.22%

1995: $295.85 billion

• Percentage change in expenses: -3.97% – #4 biggest year-over-year decline
• Expenditure as a percentage of GDP: 3.86%

1996: $287.96 billion

• Percentage change in expenses: -2.67% – #7 biggest year-over-year decline
• Expenditure as a percentage of GDP: 3.55%

1997: $293.17 billion

• Percentage change in expenses: 1.81% – #35 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.41%

1998: $291.00 billion

• Percentage change in expenses: -0.74% – the 10th largest year-over-year decline
• Expenditure as a percentage of GDP: 3.20%

1999: $298.09 billion

• Percentage change in expenses: 2.44% – #32 highest year-over-year increase
• Expenditure as a percentage of GDP: 3.09%

2000: $320.09 billion

• Percentage change in expenses: 7.38% – #20 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.11%

2001: $331.81 billion

• Percentage change in expenses: 3.66% – #27 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.12%

2002: $378.46 billion

• Percentage change in expenses: 14.06% – #4 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.45%

2003: $440.53 billion

• Percentage change in expenses: 16.40% – #3 highest year-over-year growth
• Expenditure as a percentage of GDP: 3.83%

2004: $493.00 billion

• Percentage change in expenses: 11.91% – #6 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.02%

2005: $533.20 billion

• Percentage change in expenses: 8.15% – #17 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.09%

2006: $558.34 billion

• Percentage change in expenses: 4.71% – #24 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.04%

2007: $589.59 billion

• Percentage change in expenses: 5.60% – #22 highest year-over-year increase
• Expenditure as a percentage of GDP: 4.07%

2008: $656.76 billion

• Percentage change in expenses: 11.39% – #8 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.45%

2009: $705.92 billion

• Percentage change in expenses: 7.49% – #19 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.88%

2010: $738.01 billion

• Percentage change in expenses: 4.55% – #25 largest year-over-year increase
• Expenditure as a percentage of GDP: 4.90%

2011: $752.29 billion

• Percentage change in expenses: 1.94% – #33 highest year-over-year increase
• Expenditure as a percentage of GDP: 4.82%

2012: $725.21 billion

• Percentage change in expenses: -3.60% – #5 biggest year-over-year decline
• Expenditure as a percentage of GDP: 4.46%

2013: $679.23 billion

• Percentage change in expenses: -6.34% – #2 biggest year-over-year decline
• Expenditure as a percentage of GDP: 4.03%

2014: $647.79 billion

• Percentage change in expenses: -4.63% – #3 biggest year-over-year decline
• Expenditure as a percentage of GDP: 3.69%

2015: $633.83 billion

• Percentage change in expenses: -2.15% – #9 biggest year-over-year decline
• Expenditure as a percentage of GDP: 3.48%

2016: $639.86 billion

• Percentage change in expenses: 0.95% – #38 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.42%

2017: $646.75 billion

• Percentage change in expenses: 1.08% – #36 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.32%

2018: $682.49 billion

• Percentage change in expenses: 5.53% – #23 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.32%

2019: $734.34 billion

• Percentage change in expenses: 7.60% – #18 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.43%

2020: $778.40 billion

• Percentage change in expenses: 6.00% – #21 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.70%

2021: $806.23 billion

• Percentage change in expenses: 3.58% – #28 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.46%

2022: $876.94 billion

• Percentage change in expenses: 8.77% – #13 largest year-over-year increase
• Expenditure as a percentage of GDP: 3.45%

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