The Growth in Defense and Aerospace Spending in 2024: Social and Business Impacts
As the people, unaware, witnessed the first space battle between Israel and Yemen swiftly unfold, there is hope that 2024 will be another year of peace.
It might be, but it might also not be.
It’s certainly hard to think about peace when, at this moment, there are 59 active wars in the world, a level higher than any other period since 1945.
Thus, when people think of peace, they are referring to a world without a “world war.”
For this reason, we must pay great attention to what is about to happen next year. 2024 is shaping up to be a year of significant changes in the defense and aerospace sector.
With escalating geopolitical tensions and increasing military budgets, we examine how these dynamics will affect not only global security but also society and the business world. No one is excluded.
We are objectively facing, for the first time since World War II, a significant increase in military budgets in almost all nations of the world.
The projected increase in military spending for countries such as the United States, Britain, Poland, and the new additions to NATO, like Sweden and Finland (some of these are impressive increases) has a dual effect.
On one hand, it stimulates the defense and aerospace industry, creating economic opportunities, jobs, and technological development.
On the other hand, this spending could lead to a redistribution of public resources that could negatively impact sectors like health, education, and infrastructure.
Which do I opt for?
For the latter, without a shadow of a doubt.
The impact of the reduction in public sector resources leads to discontent, dissatisfaction, and potential turmoil and riots.
Investment in advanced technologies, such as new-generation fighters and anti-drone defenses, opens new frontiers for innovation.
High-tech military startups and companies operating in the aerospace sector could experience significant growth, leveraging the increasing demand for advanced solutions. In this case, too, we are talking about a niche of companies that can, of course, ride the wave to the best of their possibilities.
While investments in defense can strengthen national security, they also lead to an increase in international tensions.
The military escalation in Asia, with China, Japan, the Philippines, Taiwan, and India, could affect regional stability.
Additionally, the development and deployment of advanced weapons, such as hypersonic missiles, introduce new challenges for arms control and conflict prevention.
It’s like throwing gasoline on the fire.
As I write, the Russian invasion of Ukraine is still ongoing, a war that hides the real conflict being waged between NATO and Russia.
Even the war in Israel is raging with unprecedented violence.
Scenarios that terrifyingly remind us of the period leading up to the outbreak of World War II.
The renewed interest in space exploration, highlighted by the phantom return (if they were ever there) of the Americans to the Moon, opens new possibilities for research and development in the aerospace field.
This not only advances science and technology but can also inspire future generations, stimulating interest in STEM (Science, Technology, Engineering, and Mathematics) and launching new careers and educational paths. If a world war does not break out, this is extremely positive news.
What can we deduce from all this?
2024 will be a key year for the defense and aerospace sector, with implications that go well beyond the military field.
While businesses can find new opportunities in this evolving environment, society as a whole will have to face the challenges posed by the increase in military spending and geopolitical tensions.
It will be crucial to find a balance between the need for security and the promotion of global peace and stability.
From my point of view, the outcome is quite clear. Governments, in concert with those who really command (multinationals), will use tensions to deprive citizens of their basic freedoms.
The excuse?
The usual one, suspending some constitutional rights.
Nazism made history. And if a war breaks out (or is made to break out)?
We will have other problems to deal with.
What to do then?
Prepare for the worst and work to build the best.
A positive scenario?
No war, a bull market, freedoms remain the same, and businesses can dedicate themselves to innovation.
The world will be a better place.
As I write this, I bitterly laugh.
If we still exist and the human race has not disappeared, I think we will have to wait until 2050 to see the extraordinarily positive effects that follow a great destruction.
Past centuries teach us.
Author: Koan Bogiatto
Koan Bogiatto has explored approximately 123 countries around the world and, after living in Italy, Spain and then in the USA, Florida. He is the only Italian to have received the prestigious Green Card for Extraordinary Achievement and Outstanding Individual from the U.S. Government, in the fields of education and coaching. In the past Koan has served as a consultant for eBay, INA Assitalia, Wind, 21st Century, Alviero Martini, Politecnico di Torino, IUM Monaco, Sai, De’Longhi Group, and Il Sole 24 Ore. “He is the founder of several successful companies in various fields, including coaching, education, real estate, and cryptocurrency trading, to name a few.”
