Gonna write this up in longer form, but folks complaining that the $45bn Ukraine costs are high miss two key points:

1. The direct costs in (US) military aid are surprisingly small; in the order of $19bn this year, and $10.8bn committed (so far) for next year

2. The indirect economic costs of the Russian war to the US economy (i.e. to the private sector not via the government) are in the order of $600-700bn per year. To pick a random company, it's nearly $6-10bn in costs to Apple *alone*.

In other words, if the US upped it's spend by, say, 25% and that reduced the length of the war by *just a whole week*, it would *make money*.

It's a good example of how the size of war economics harms get truly insane really quickly, and get you to unintuitive places about just how much of the war costs end up as indirect, rather than direct costs.

Or if you want it put another way, every American is spending in the order of $50 a year in direct lethal assistance to Ukraine, but losing about $1700 a year in indirect economic costs caused by that war.

If you had a company that sold a widget that upped a business cost from $50 to, let's say, $100, but doing so saved the customer $1700 a year, how quickly do you think VCs in Silicon Valley would jump in to invest in that widget?

Economic costs get into stratospheric numbers when you start looking at global dampening effects, and get really hard for the human brain to comprehend. So you end up having to do the translation into comprehendible numbers.

So if you want to put it another way, the indirect costs of the Ukraine war is equivalent to, say, 6 million American jobs a year.

How much would Congress pay in subsidies to get 6 million people into new jobs? Idk. But $45bn sounds super cheap at those scales.

Taking OECD numbers of the cost of the war at 3% of global GDP, give or take, and assuming that's uniformly spread globally, ending the war would *double* US GDP growth.

So why is the US investing only $10.8bn of lethal aid next year into getting that to happen sooner?

Anyway, that's why it's super disingenuous for folks to say the numbers are way too big. Yes, the direct costs are large. But if you take it as an investment into ending the war sooner, and looking at the indirect costs, it quickly looks insanely small for what it's trying to achieve.
@Pwnallthethings I also reflect on how much this stuff was literally stockpiled to... destroy the Russian military in event of an invasion of Europe. Like what else were you planning to do with it.
@SwiftOnSecurity @Pwnallthethings Sell it for a huge profit to everyone else? (But yes, I agree)
@kuxaku @SwiftOnSecurity @Pwnallthethings Most of it was in current inventory or storage, which only gets sold to others through the Excess Defence Articles programme at reduced cost. Although that said the new gear bought to replace it will make defence contractors happy.

@darrenolivier Thanks, I didn't know that. Never hurts to be better informed :)

But yea, they'll make money either way out of this.

Folks in the US complaining about the costs of this really just don't understand what it could cost us (the whole thread above basically).

@kuxaku Only a pleasure.

Sorry, I didn’t mean for it to seem I was correcting you, that wasn’t my intention. EDA and the rest of the US’s assistance/disposal programmes are a bit niche and not something most people need to think or know about.

@darrenolivier Nope, all good. I know enough to be the ones my friends go to for answers, but that's about it 😀

The military industrial complex we've got in the US is a plague in my opinion (not the same as a country having self defense), but being accurate about it is important.

@kuxaku Thank you.

Yes, it provides value to the US in many areas but like any industry that powerful needs to be kept in check and its size, purpose, and activities closely monitored.