How is the United States able to give billions to other countries when we are trillions in debt and how does it get approved?
In: Economics
The money is spent in the US, and would likely be spent anyway. You have to build tanks constantly whether you lose them or not because otherwise you forget how to build tanks. That means that in peacetime you just rack up piles of the things.
It’s wasteful but it’s necessary because if you just made as many as you need and then stop then you’ll have a really bad time if someone starts destroying them. The factory where you used to make them will be a craft brewery and the machinists will have become tiktok influencers. Better to just keep them employed making tanks you don’t need.
Then someone else needs some tanks and you’ve got thousands of the things you don’t need so you’re like “why don’t I give them the tanks”. But technically the tanks aren’t worthless, even if they’re strictly speaking worthless to you and actually have storage and disposal costs if you keep them. So technically giving the tanks away is aid, even though you’re happy to be rid of the things.
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