LINEA R REGRESSION ANALYSIS ON THE IMPACT OF DEFENCE EXPENDITURE ON HUMAN CAPITAL DEVELOPMENT IN U.S.A.:A TIME SERIES ECONOMETRICS STUDY

The main task of any effective government is the safety of people and their properties, which can be done through continuous investments in defense and military forces. The budget for the army of any country shows how much it cares about security and how important it is for its national policy. For many years, the USA has been the leader in military spending in the world and it constitutes about 37% of total military spending and in 2024 it reached approximately $997 billion, which accounts for about 3.4% of GDP. In times of peace after the Cold War era, the main events that influenced US defense spending were the Gulf War, the war in Afghanistan and the war in Iraq. These wars caused the increase in military budget, which increased sharply from approximately $413 billion in 2001 to $833 billion in 2011 because of the operations after September 11. From 1974 to present day, the US has conducted many military interventions which include Lebanon intervention, Invasion of Grenada, Invasion of Panama, Somalia Intervention, Bosnian War Intervention, Kosovo War, and Libya intervention. Research reveals that military involvement by the US has been quite significant with more than 250 military interventions since 1991. Global military spending hit an all-time high of $2.7 trillion in 2024 amid rising geopolitical tensions and increasing defense spending in various countries. These developments illustrate the strong relationship between geopolitical disputes and increased military spending.