It’s Costing Peanuts for the US to Defeat Russia
https://cepa.org/article/its-costing-peanuts-for-the-us-to-defeat-russia/Quote
Former President Trump, and others in the US including some Democrats as well as Republicans, have criticized continued US support for Ukraine in its war with Russia. They have called for military and financial support to Ukraine to be cut, even ended. They downplay the risk from Russia and argue that the money should be spent at home.
Yet from numerous perspectives, when viewed from a bang-per-buck perspective, US and Western support for Ukraine is an incredibly cost-effective investment.
Altogether, the Biden administration received Congressional approval for $40bn in aid for Ukraine for 2022 and has requested an additional $37.7bn for 2022. More than half of this aid has been earmarked for defense.
These sums pale into insignificance when set against a total US defense budget of $715bn for 2022. The assistance represents 5.6% of total US defense spending. But Russia is a primary adversary of the US, a top tier rival not too far behind China, its number one strategic challenger. In cold, geopolitical terms, this war provides a prime opportunity for the US to erode and degrade Russia’s conventional defense capability, with no boots on the ground and little risk to US lives.
The Ukrainian armed forces have already killed or wounded upwards of 100,000 Russian troops, half its original fighting force; there have been almost 8,000 confirmed losses of armored vehicles including thousands of tanks, thousands of APCs, artillery pieces, hundreds of fixed and rotary wing aircraft, and numerous naval vessels. US spending of 5.6% of its defense budget to destroy nearly half of Russia’s conventional military capability seems like an absolutely incredible investment. If we divide out the US defense budget to the threats it faces, Russia would perhaps be of the order of $100bn-150bn in spend-to-threat. So spending just $40bn a year, erodes a threat value of $100-150bn, a two-to-three time return.
The US military might reasonably wish Russia to continue deploying military forces for Ukraine to destroy.
Meanwhile, replacing destroyed kit, and keeping up with the new arms race that it has now triggered with the West will surely end up bankrupting the Russian economy; especially an economy subject to aggressive Western sanctions. How can Russia possibly hope to win an arms race when the combined GDP of the West is $40 trillion, and its defense spending amounting to 2% of GDP totals well in excess of $1 trillion when the disproportionate US defense contribution is considered? Russia’s total GDP is only $1.8 trillion. Vladimir Putin will have to divert spending from consumption to defense, risking social and political unrest over the medium term, and a real and soon-to-be present danger to his regime. Just imagine how much more of a bargain Western military aid will be if it ultimately brings positive regime change in Russia.
Second, the war has served to destroy the myth that Russian military technology is somehow comparable to that of the US and West. Remember that Ukraine is using only upgraded second generation US technology but is consistently beating whatever Russia’s military can deploy. Wars are shop windows for defense manufacturers; any buyer in their right mind will want the technology made by the winner. Putin’s misjudgment has merely provided a fantastic marketing opportunity for its Western competitors.
Note also that the war is also pushing NATO partners to quickly increase spending to the 2% of GDP and above target. Given the US’ technological advantage in defense equipment, a sizeable share of this additional military outlay will be spent on US equipment.