Rising Military Spending Could Trigger Global Debt and Welfare Crisis: Economist Jomo Kwame Sundaram!

Renowned economist Professor Jomo Kwame Sundaram (J.K. Sundaram) has warned that rising military expenditure and growing arms purchases by nations could push global economies into deeper debt while weakening welfare systems. In an interview, he expressed concern that governments are increasingly using taxpayers’ money to purchase weapons and fuel conflicts rather than investing in public welfare. Referring to the ongoing tensions between the United States, Israel and Iran, Sundaram said diplomatic efforts are being sidelined, pushing the world toward a dangerous geopolitical spiral. He cautioned that such wars could destabilize the global economy by disrupting oil supplies, raising fuel costs, and affecting transportation and essential commodities.

According to Sundaram, the ripple effects of war extend beyond oil markets to agriculture, manufacturing and food exports. Rising military budgets in several countries, particularly the United States, are already forcing cuts in welfare schemes while defense allocations continue to surge. Global military spending reached nearly $2.7 trillion in 2024, with the United States accounting for about 36 percent of the total. If conflicts intensify in the Middle East, especially around critical oil routes like the Strait of Hormuz, inflation could rise worldwide and economic growth could slow. He also warned that disruptions in energy supply may increase production costs and interest rates, potentially affecting food exports and economic stability across Asia and other regions.