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The Cost of War

Keywords

war-on-disease, 1-percent-treaty, medical-research, public-health, peace-dividend, decentralized-trials, dfda, dih, victory-bonds, health-economics, cost-benefit-analysis, clinical-trials, drug-development, regulatory-reform, military-spending, peace-economics, decentralized-governance, wishocracy, blockchain-governance, impact-investing

In 2024, humanity spent a record $2.72T on your species’ favorite expensive hobby: organized violence, up 9.4% from the year before, the steepest single-year increase since the Cold War55. If you stacked that money in one-dollar bills, you could build a bridge two-thirds of the way to the Moon. You are building faster.

You spend enough on weapons to pave a road to space. Yet you can’t figure out how to stop dying from diseases we know how to cure. And that’s just the money you spend on purpose. The Pentagon has lost $2.5 trillion141. Not spent. Lost. Like car keys, except these car keys could cure cancer hundreds of times over.

This chapter is the receipt. A credit card bill for self-destruction. Instead of coffee and books, you bought missiles and robots. Instead of interest, you pay in human lives. And unlike a credit card, you can’t declare bankruptcy. You just keep paying.

The Itemized Receipt for Armageddon

The costs of war look like a grocery receipt from a shop that only sells things that explode. Everything has a price. None of it is food.

The Shopping List (2024 Global Data)

Cost Category Amount (USD Billions) Per Capita Daily Cost How We Counted
Military Personnel Salaries $681.5 $87.37 $1.87B Global armed forces: 28.4M × avg. salary $24,000 (adjusted for inflation)142
Weapons Procurement $654.3 $83.88 $1.79B SIPRI Arms Transfer Database69 aggregation
Operations & Maintenance $579.8 $74.33 $1.59B NATO standardized O&M ratios × global spending143
Military Infrastructure $520.4 $66.72 $1.43B Base construction/maintenance × 4,435 major facilities144
Intelligence Operations $282.0 $36.15 $0.77B Estimated 10.4% of total military budgets145

Total Direct Military Spending: $2,718.0 billion

Global military spending (inflation-adjusted) has grown 2.7× since 1960

Global military spending (inflation-adjusted) has grown 2.7× since 1960

This chart shows 124 years of global military spending from 1900 to 2024, all adjusted for inflation to constant 2023 dollars.

What 124 Years of Receipts Are Screaming at Us

  • WWII Peak (1944): $3.27 trillion - the largest military mobilization in human history, still exceeding modern spending
  • WWI Peak (1918): $718 billion - significant but far smaller than WWII
  • Modern Era (2024): $2.72 trillion - approaching but not yet exceeding the WWII peak

Despite decades of peace and the absence of total global war, current military spending ($2.72T) is 83% of the WWII peak and 41× higher than pre-WWI levels ($66B in 1900). The world spends nearly as much on military today as it did during the largest war in history.

Data Sources

  • 1900-2012: Correlates of War National Material Capabilities Dataset (COW NMC)
  • 2013-2024: SIPRI (Stockholm International Peace Research Institute) Military Expenditure Database
  • All values converted to constant 2023 USD using CPI data

The Equation of Immediate Destruction

The basic math for direct war costs looks like this:

\[ \mathrm{C}_{\text{direct}} = \mathrm{M}_{\text{spending}} + \mathrm{I}_{\text{damage}} + \mathrm{H}_{\text{casualties}} + \mathrm{T}_{\text{disruption}} \]

Here is what those letters mean, in case you find algebra comforting:

  • Military Spending: The money for soldiers, bombs, and fast jets.
  • Infrastructure Damage: The cost to rebuild the cities, bridges, and power plants you just blew up. You build them, blow them up, build them again. It is the world’s most expensive form of recycling.
  • Human Casualties: The value of lost lives. Even economists, who disagree about everything, agree that dead people are bad for business.
  • Trade Disruption: The money lost when bombs interrupt commerce. Trucks cannot truck when the road is a crater.

The Current Annual Bill

Cdirect = $7,655 billion annually

Every second of every day, humanity spends $242,600 on killing each other and cleaning up the mess. While you read this sentence, you spent about $1.2 million. By the time you feel bad about that, another million is gone.

Military Hardware: The World’s Worst Investment

If weapons were a stock, here is the prospectus:

  • Expected annual return: 0%.
  • If actually used, return: -100% (everything explodes, including the investment).
  • Maintenance costs: $579.8B/year.
  • Useful life: 10-20 years before obsolescence.
  • Salvage value: $0.
  • Exit strategy: Death.
  • Investor profile: Nations with more money than sense.
  • Side effects: May accidentally destroy civilization.
  • Competitive dynamics: Makes neighbors buy the same product.
  • Success condition: Only “works” if it is never used (if you use nuclear weapons, you have already failed).

No rational investor would touch this. You put trillions into it annually.

You buy weapons because they have weapons. They buy weapons because you have weapons. Everyone has weapons. Nobody is safer. You’re very good at circles.

You buy weapons because they have weapons. They buy weapons because you have weapons. Everyone has weapons. Nobody is safer. You’re very good at circles.

The Dead Capital Problem

Normal money grows. You plant an apple tree, you get apples. You build a factory, you get products. You invest in a hospital, people live longer and pay more taxes.

Military money sits in a warehouse, rusts, becomes obsolete, and has negative net value. If used, it destroys value, creates rebuilding bills, and kills your customers. It is the only investment where success means you wasted your money, and failure means everyone is dead.

Normal investment: money becomes factories, factories make products, products make money. Military investment: money becomes bombs, bombs make rubble, rubble makes nothing. You prefer the second one.

Normal investment: money becomes factories, factories make products, products make money. Military investment: money becomes bombs, bombs make rubble, rubble makes nothing. You prefer the second one.

President Eisenhower (who defeated the Nazis) explained this in 1953:

“Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed.”

A bomb is not an asset. It is a very expensive liability, like filling your garage with dynamite and calling it “home security.”

This is not pacifism. This is accounting.

A tractor builds value forever. A tank destroys value once. You bought more tanks.

A tractor builds value forever. A tank destroys value once. You bought more tanks.

The Price of a Ghost: Valuing Human Life

The U.S. Department of Transportation148 says a statistical life is worth $13.6 million136. The EPA says $9.6 million146. Two government agencies, both American, cannot agree on what you are worth. A four million dollar disagreement over the price of a person. We will split the difference and say $10 million, which is generous for a species that keeps blowing itself up.

The Transportation Department says your life is worth $13.6 million. The EPA says $9.6 million. They can’t agree on the price of you. But they can agree to spend it on missiles.

The Transportation Department says your life is worth $13.6 million. The EPA says $9.6 million. They can’t agree on the price of you. But they can agree to spend it on missiles.

The Invoice for Dead People

Conflict Type Deaths/Year Cost per Death Annual Cost Source
Active Combat

234 thousand deaths/year (95% CI: 180 thousand deaths/year-300 thousand deaths/year)

$10,000,000

$2.34T (95% CI: $1.25T-$3.57T)

Armed Conflict Location & Event Data149
Terror Attacks

8.3 thousand deaths/year (95% CI: 6 thousand deaths/year-12 thousand deaths/year)

$10,000,000

$83B (95% CI: $43.1B-$131B)

Global Terrorism Database150
State Violence

2.7 thousand deaths/year (95% CI: 1.5 thousand deaths/year-5 thousand deaths/year)

$10,000,000

$27B (95% CI: $12B-$48.4B)

Uppsala Conflict Data Program151

Total Human Cost: $2.45T (95% CI: $1.31T-$3.75T) annually

245 thousand (95% CI: 194 thousand-302 thousand) people die in conflicts each year. That is 670 people every day. One every 2.2 minutes. Each worth $10 million, apparently.

Infrastructure Destruction: Building Things, Then Un-Building Them

When humans fight, they break things. Big things. Expensive things. Things they spent decades building. Things that took international loans to finance. Things they will take out new international loans to rebuild.

How Much It Costs to Rebuild What You Just Blew Up (2023 Estimates)

Infrastructure Type Damage (Billions) War Zone Markup How This Was Calculated
Roads and bridges $487.3152 1.4× original cost You blew up the road. Now the road costs more.
Power plants and grids $421.7152 2.1× original cost Electricity is harder to restore than to destroy (as a general rule).
Phone and internet $298.1152 1.8× original cost Hard to coordinate reconstruction without communications. Ironic.
Water and sewage $267.8152 1.6× original cost People need water. Bombs do not care.
Schools $234.5152 1.3× original cost The children who would have attended are also gone.
Hospitals $165.6152 1.9× original cost The building you need to fix war injuries. Destroyed by the war.

Total Infrastructure Damage: $1.88T (95% CI: $1.37T-$2.47T)

Replacing a bridge in a war zone costs 1.3-2.1x more than building one in peace, with additional conflict zone premiums of 1.2-1.8x. You pay extra because the construction workers keep getting shot at. This is what economists call a “conflict premium” and what normal people call “insane.”

Economic Disruption: The Soufflé Problem

Wars stop trade. Global commerce is a fragile thing, like a very large soufflé that you keep dropping bombs on. Every supply chain is a chain, and chains break at the weakest link. You keep bombing the weakest link.

The Soufflé Report

What Stopped Working Annual Loss (Billions) Why How Long
Ships cannot ship $247.143 The ocean has bombs in it 3.2 years avg
Factories cannot factory $186.843 The parts come from the place you bombed 2.8 years avg
Energy prices go insane $124.743 Oil comes from places with wars (coincidence) 1.9 years avg
Money stops meaning things $57.443 Currency traders panic (this is their job) 4.1 years avg

Total Trade Disruption: $616B (95% CI: $450B-$812B) annually

That is the cost of ships that cannot ship, trucks that cannot truck, and planes that cannot plane, all because of bombs. The global economy is a machine, and you keep throwing grenades into the gears.

The Ghost in the Machine: Indirect Costs

The direct costs are just the sticker price. The real cost of war is what you didn’t buy. Every dollar spent on a missile is a dollar that didn’t cure leukemia, educate a child, or build a bridge that wasn’t going to be blown up.

The bullets are cheap. The lost hospitals are expensive. You only count the bullets.

The bullets are cheap. The lost hospitals are expensive. You only count the bullets.

Opportunity Cost Analysis: The Roads Not Taken

Here is a thought experiment that apparently qualifies as radical in your civilization: What if you spent your war money on literally anything else? A dart thrown at a random page of the budget would land on something more useful.

What Else You Could Have Bought (2023 Dollars)

Alternative Investment Global War Spending Could Fund Mathematical Conversion Annual Benefit
Medical Research 40.3 years of current spending $2.72T ÷ $67.5B (95% CI: $54B-$81B) = 40.3 WHO research expenditure153
Global Education Access 90.6 years of universal coverage $2.72T ÷ $30B154 = 90.6 UNESCO Education for All155
Poverty Eradication 2.7 complete eliminations $2.72T ÷ $1,000B156 = 2.7 World Bank extreme poverty estimates

The Multiplier Effect (Bombs Do Not Buy Groceries)

Every dollar the government spends creates more than a dollar of economic activity. This is called a “multiplier.” Here are yours:

The Growth You Chose Not to Have

The math is simple. Money spent on bombs grows the economy a little (the bomb factory employs people, who buy sandwiches). Money spent on anything else grows it a lot more. By choosing bombs, you choose to be poorer. Deliberately. Every year. On purpose. You are the only species that has figured out compound interest and then decided to compound losses instead.

\[ \begin{aligned} \text{Alternative GDP Growth} = {} & (\text{Military Spending} \times \text{Alternative Multiplier}) \\ & - (\text{Military Spending} \times \text{Military Multiplier}) \end{aligned} \]

Healthcare returns 4.3x per dollar. Military returns 0.6x per dollar. You invested in the one that loses money because it has cooler explosions.

Healthcare returns 4.3x per dollar. Military returns 0.6x per dollar. You invested in the one that loses money because it has cooler explosions.

\[ \text{Alternative GDP Growth} = (\$2.7\text{T} \times 1.6) - (\$2.7\text{T} \times 0.6) = \$2.7\text{T} \]

We lose $2.7 trillion in growth. Every year. Forever.

Long-term Human Costs: The Gift That Keeps on Taking

Wars do not end when the shooting stops. They linger like a house guest who broke your furniture, traumatized your children, and now needs therapy. Which you also pay for.

The Bill That Never Arrives (Veteran Healthcare)

Cost Category 2023 Spending 20-Year Projection Mathematical Model
PTSD Treatment $47.2B44 $944B44 Current cases × treatment duration × cost inflation
Physical Rehabilitation $63.8B44 $1,276B44 Injury complexity index × technology advancement costs
Disability Compensation $89.1B44 $1,782B44 Disability ratings × benefit schedules × actuarial projections
Total Veteran Care $200.1B44 $4,002B44 Composite of above factors

Veterans need care for decades after the war “ends,” with healthcare costs inflating at 3.5-4.6% annually157. The war ends. The bill does not. You are still paying for Vietnam. Your grandchildren will still be paying for Iraq.

Refugee Support: The Mathematics of Making People Leave

108.4 million displaced people158. That is roughly the population of Germany, except these people do not have Germany. $1,384 per year per person42 just to keep them alive in tents. That is $150.0 billion annually to warehouse the people your wars displaced.

108.4 million refugees. $1,384 per person to house them. Total cost: less than three weeks of global military spending. You chose the missiles.

108.4 million refugees. $1,384 per person to house them. Total cost: less than three weeks of global military spending. You chose the missiles.

Each refugee also loses $23,400 in earning potential annually159, adding another $2.5 trillion in lost GDP. These are doctors, engineers, teachers, and farmers who are now professionally employed at standing in line for water.

Environmental Degradation: Poisoning the House You Live In

Wars poison the planet. Explosions, it turns out, are not good for the environment. This should not require saying, and yet here we are, saying it, because you keep acting surprised.

What You Did to Your Own Dinner

Environmental Impact Damage Value Restoration Cost Time to Recovery
You poisoned the dirt $34.7B37 $69.4B37 15-30 years
You poisoned the water $28.3B37 $56.6B37 8-25 years
You poisoned the air $21.9B37 $43.8B37 2-8 years
You killed the animals $15.1B37 Irreplaceable Forever

Total Environmental Damage: $100B (95% CI: $70B-$140B) annually

The biodiversity loss is listed as “irreplaceable.” Once a species is extinct, money cannot bring it back. You have not invented un-extinction yet. You have been too busy inventing new ways to cause regular extinction.

The Existential Overdraft: The AI Arms Race

You perfected every way to kill each other with rocks and atoms. Then, with the restless creativity of a species that cannot sit still, you invented a new one: artificial intelligence. Now you are in a race to build the smartest machine possible and hand it a weapon. You called your species “Homo sapiens,” which means “wise man.” This was aspirational.

You’re building robot soldiers that think faster than you and can’t explain why they shoot. This might be bad. A 1% safety tax could fix it. You haven’t implemented the tax.

You’re building robot soldiers that think faster than you and can’t explain why they shoot. This might be bad. A 1% safety tax could fix it. You haven’t implemented the tax.

The problem with teaching a toaster to wage war is that it is not human. It does not fear being turned into dust. It lacks the morals that (sometimes, on good days, when properly caffeinated) keep you from destroying a city just to be “efficient.” The main risks of giving the car keys to a killer computer:

  • Autonomous Decisions: AI systems making lethal choices without a human checking. This works great until the AI decides the most efficient way to stop war is to remove the species that starts them. That is you, in case you were wondering.
  • Blinding Speed: An AI conflict could escalate from a small argument to global destruction in minutes. This happens before a human can find the right button, convene a meeting, or finish their coffee.
  • Opaque Logic: You do not always know why an AI makes choices. So when your drone army attacks a neutral alpaca farm, good luck writing the apology letter.

Here is how you start to fix this. Take 1% of the money you plan to spend on killer robots. One cent out of every dollar. Use it to fund research on how to keep them from killing you. This is not idealism. It is insurance against your own cleverness, which is, historically, the thing most likely to kill you. You invented dynamite, nuclear fission, and social media. Your track record with powerful inventions is not reassuring.

The Total Cost of Organized Violence

Here is the grand total. You may want to sit down. Actually, you are probably already sitting. You may want to lie down. Perhaps permanently.

The Full Receipt (2024)

What You Spent on Purpose

Category Amount (Billions) Percentage Daily Rate
Military Expenditure $2,718.0 36.0% $7.45B
Human Life Losses $2,446.0 32.4% $6.70B
Infrastructure Destruction $1,875.0 24.9% $5.14B
Trade Disruption $616.0 8.2% $1.69B
Direct Subtotal $7,655.0 100% $20.97B

What You Lost by Accident

Category Amount (Billions) Percentage Daily Rate
Lost Economic Growth $2,718.0 76.4% $7.45B
Veteran Healthcare $200.144 5.6% $0.55B
Refugee Support $150.0158 4.2% $0.41B
Environmental Damage $100.037 2.8% $0.27B
Psychological Impact $232.041 6.3% $0.64B
Lost Human Capital $300.040 8.1% $0.82B
Indirect Subtotal $3,700.1 100% $10.14B

The Number

\[ \begin{gathered} Cost_{war,total} \\ = Cost_{war,direct} + Cost_{war,indirect} \\ = \$7.66T + \$3.7T \\ = \$11.4T \end{gathered} \]
where:
\[ \begin{gathered} Cost_{war,direct} \\ = Loss_{life,conflict} + Damage_{infra,total} \\ + Disruption_{trade} + Spending_{mil} \\ = \$2.45T + \$1.88T + \$616B + \$2.72T \\ = \$7.66T \end{gathered} \]
where:
\[ \begin{gathered} Loss_{life,conflict} \\ = Cost_{combat,human} + Cost_{state,human} \\ + Cost_{terror,human} \\ = \$2.34T + \$27B + \$83B \\ = \$2.45T \end{gathered} \]
where:
\[ \begin{gathered} Cost_{combat,human} \\ = Deaths_{combat} \times VSL \\ = 234{,}000 \times \$10M \\ = \$2.34T \end{gathered} \]
where:
\[ \begin{gathered} Cost_{state,human} \\ = Deaths_{state} \times VSL \\ = 2{,}700 \times \$10M \\ = \$27B \end{gathered} \]
where:
\[ \begin{gathered} Cost_{terror,human} \\ = Deaths_{terror} \times VSL \\ = 8{,}300 \times \$10M \\ = \$83B \end{gathered} \]
where:
\[ \begin{gathered} Damage_{infra,total} \\ = Damage_{comms} + Damage_{edu} + Damage_{energy} \\ + Damage_{health} + Damage_{transport} + Damage_{water} \\ = \$298B + \$234B + \$422B + \$166B + \$487B + \$268B \\ = \$1.88T \end{gathered} \]
where:
\[ \begin{gathered} Disruption_{trade} \\ = Disruption_{currency} + Disruption_{energy} \\ + Disruption_{shipping} + Disruption_{supply} \\ = \$57.4B + \$125B + \$247B + \$187B \\ = \$616B \end{gathered} \]
where:
\[ \begin{gathered} Cost_{war,indirect} \\ = Damage_{env} + Loss_{growth,mil} + Loss_{capital,conflict} \\ + Cost_{psych} + Cost_{refugee} + Cost_{vet} \\ = \$100B + \$2.72T + \$300B + \$232B + \$150B + \$200B \\ = \$3.7T \end{gathered} \]

$11.4 trillion. Every year.

That is $1,419 per person per year. Including babies, who did not vote for this. Over an 80-year lifetime: $113,551 per person. A decent car, a year of college, or a down payment on a house. You got bombs instead. Bombs you will never see, in countries you cannot find on a map.

War costs you $113,551 in your lifetime. That’s a car, or college, or a down payment on a house. You got none of those things. You got bombs in countries you can’t pronounce.

War costs you $113,551 in your lifetime. That’s a car, or college, or a down payment on a house. You got none of those things. You got bombs in countries you can’t pronounce.

For Context

That is 12.7% of global GDP160, 168 times the WHO’s budget161, and enough to end extreme poverty 11.4 times over156. You could end poverty eleven times and still have change left for a twelfth. You bought bombs instead. If stupidity were a natural resource, you would be energy independent.

Each missile costs the same as 50 teachers’ salaries. You have many missiles. You have large classrooms.

Each missile costs the same as 50 teachers’ salaries. You have many missiles. You have large classrooms.

The Running Tab

$11.4T (95% CI: $9.01T-$14.1T) per year is just the current bill. It does not include the historical tab, which is enormous, unpaid, and still accruing interest in the form of dead people.

The United States alone (one country, on one planet, in one unremarkable solar system) has spent the following on its named wars: the Civil War ($112B), World War I ($468B), World War II ($5.7T), Korea ($478B), Vietnam ($1T), and the post-9/11 wars ($8T). That is over $16 trillion on wars with names162,163. The ones without names cost extra. And this is just America’s share. Everyone else was also buying bullets.

The total tab for everyone, across all of recorded history, is approximately $180 trillion in constant 2024 dollars.1

Three-quarters of that was spent after 1945, during what your historians call “the long peace.” It is the most expensive peace in history. The 2024 bill alone hit a record $2.72T, up 9.4% in a single year, the steepest increase SIPRI has ever recorded55. You are not winding down. You are warming up.

To put $180 trillion in perspective: one year of modern military spending ($2.7 trillion) exceeds the entire military expenditure of the Roman Empire across five centuries. And $180 trillion divided by $4.5B (95% CI: $3B-$6B) per year equals 40,000 years of government-funded clinical trials. Your species has been running clinical trials for about 80 years. You could have funded every clinical trial you will ever run, for the next 500 lifetimes, with the money you spent killing each other. Instead, you have a very large collection of spent shell casings and 6,650 diseases with zero FDA-approved treatments.

The full receipt, and the money printer that funded most of it, is in Your Money Comes From a Building.

The Cumulative Damage Report: Everything You Broke Since 1900

The annual bill is $11.4 trillion. That is the current invoice. You have been running a tab since 1900. The tab is worse.

Conflict Period Property Destruction (2024 USD) What Was Destroyed
World War I 1914-1918 ~$5 trillion Northern France, Belgium, Eastern Europe; 10.9% of combined US/UK/France GDP consumed164
World War II 1939-1945 ~$23 trillion 70% of European industrial infrastructure; 1,710 Soviet cities; 30% of Poland’s buildings164
Korean War 1950-1953 ~$500 billion 85% of buildings destroyed; most of Seoul flattened, rebuilt, then used as a Samsung factory
Vietnam War 1955-1975 ~$1 trillion 10 million hectares of forest poisoned; you are still cleaning it up 50 years later
Post-9/11 Wars 2001-present ~$8 trillion Iraq, Afghanistan, Syria, Libya infrastructure163
Other conflicts 1900-present ~$5-10 trillion China civil war, Iran-Iraq, Congo, Yugoslavia, Ethiopia, Ukraine

Cumulative property destruction: roughly $45T (95% CI: $30T-$60T). Enough to rebuild every school, hospital, and road on the planet. Twice.

Add another $5T (95% CI: $2T-$10T) in cumulative environmental destruction: nuclear test sites that will be radioactive for millennia, 80 million land mines still in the ground, Agent Orange contamination across 4.8 million acres of Vietnam (cleanup cost so far: $390 million, with decades to go), the Zone Rouge in France still too poisoned to inhabit a century after WWI, Gulf War oil fires that burned 600 wells for ten months, depleted uranium contamination across Iraq and the Balkans, and 1.3 billion tonnes of military CO2 emissions from US operations alone between 2001 and 2018165. You poisoned the house, then moved to another room and poisoned that one too.

The Brain Drain: Professionals Killed Since 1900

Approximately 310 million deaths (95% CI: 200 million deaths-340 million deaths) people have been killed by wars, genocides, and policy-induced famines since 1900.2 That is a number. Here is what is inside the number.

Scientists and engineers make up about 5% of the modern labor force168. In the early-to-mid 20th century, the share was lower (roughly 0.1% scientists, 0.2% engineers, 0.3% physicians, 0.4% nurses, 1% teachers). Apply those workforce percentages to 310 million (95% CI: 200 million-340 million) dead:

Profession Workforce Share Estimated Killed What They Would Have Done
Scientists and researchers ~0.1% ~310,000 Discovered things
Physicians ~0.3% ~930,000 Kept people alive
Engineers ~0.2% ~620,000 Built things that work
Nurses and midwives ~0.4% ~1,240,000 Delivered care (and babies)
Teachers and professors ~1.0% ~3,100,000 Trained all of the above
Skilled tradespeople ~3.0% ~9,300,000 Rebuilt what bombs destroyed
Total professional class ~5% ~15,500,000 Made civilization function

These are conservative estimates because they assume professionals died at the same rate as the general population. They did not. Educated people were disproportionately targeted. The Khmer Rouge executed anyone wearing glasses. The Nazis murdered a third of the world’s Jewish population, which included a wildly disproportionate share of Europe’s physicists, physicians, and mathematicians. Stalin’s purges targeted engineers and academics. Mao’s Cultural Revolution sent professors to labor camps. Iraq lost thousands of scientists and doctors after 2003. Every authoritarian regime in history has discovered the same insight: educated people ask inconvenient questions. The solution, apparently, is murder.

Three hundred thousand scientists. Nine hundred thousand doctors. How many cures died with them? How many diseases would already be eradicated if those 310,000 researchers had lived to finish their work? You cannot calculate a counterfactual. But you can note that Alexander Fleming discovered penicillin because he happened to survive World War I. One scientist, one accidental discovery, one billion lives saved. You killed 310,000 others who never got the chance.

The Stolen Years: What the Dead Were Worth

The 310 million (95% CI: 200 million-340 million) dead were not just names on memorials. They were years of life, unlived. Each death stole an average of 27 (95% CI: 20-35) years of remaining life (soldiers averaged 23 years old at death; civilian casualties skewed older; weighted average age at death roughly 28, against a mid-century life expectancy of 55).

\[ \begin{gathered} YLL_{war,total} \\ = Deaths_{war,1900} \times YLL_{war} \\ = 310M \times 27 \\ = 8.37B \end{gathered} \]

8.37 billion life-years. To visualize that: if you gave every stolen year its own second on a clock, the clock would run for 171 years.

What are those years worth? The standard economic value of a quality-adjusted life year (QALY) is $150K (95% CI: $100K-$199K)169. Multiply:

\[ \begin{gathered} V_{war,QALY} \\ = YLL_{war,total} \times Value_{QALY} \\ = 8.37B \times \$150K \\ = \$1260T \end{gathered} \]
where:
\[ \begin{gathered} YLL_{war,total} \\ = Deaths_{war,1900} \times YLL_{war} \\ = 310M \times 27 \\ = 8.37B \end{gathered} \]

$1.26 quadrillion (95% CI: $837T-$1.67 quadrillion).

You spent $170T on military. The lives you destroyed were worth $1.26 quadrillion (95% CI: $837T-$1.67 quadrillion). You spent $1 on killing and destroyed over $7 in human value. This is the actual return on investment for organized violence: negative 739%.

No other investment in human history has a worse ROI. Not tulip bulbs. Not Enron. Not the man who traded Bitcoin for pizza. War is the worst trade your species has ever made, and you keep making it, every year, on purpose, with a bigger budget.

The Compound Interest of Stupidity

The numbers above are bad. But they are not the worst number. The worst number is the one you never see: the wealth you would have if you had spent the war money on literally anything productive. This is the compound opportunity cost, and it is the largest number in this chapter.

Most estimates of war’s opportunity cost just count the budget: “$2.7 trillion a year redirected.” That captures one channel. But a world without war since 1900 is not a world that merely moved money around. It is a world where eight compounding channels of growth were never interrupted:

Channel What compounds Growth boost Evidence
1. Productive reallocation Murder money becomes medicine money +0.8-1.5pp Costa Rica abolished its army; GDP growth jumped 0.5-0.8pp for 60 years170
2. Preserved capital stock Factories not bombed keep producing +0.2-0.4pp Each 1pp of military/GDP costs ~1.1pp of growth171
3. 310M lives + descendants Dead people cannot buy things or invent them +0.2-0.4pp Their unborn children and grandchildren add 500M-1B people
4. No trade disruption Ships ship, trucks truck, refugees work +0.1-0.3pp 108M refugees standing in line for water instead of practicing medicine
5. No poisoned land Farms produce food instead of landmine casualties +0.1-0.2pp Contaminated soil produces nothing for 15-30 years
6. No Cold War isolation China opens in 1950, not 1978 +0.1-0.3pp Half the world economy was behind a wall for 45 years
7. No dictators installed Wars produce Stalins; peace produces democracies +0.1-0.3pp Better property rights, less corruption, more investment
8. Open science No security clearances or Iron Curtains +0.05-0.15pp Scientists who can email each other discover more than scientists who cannot
Stacked total All of the above, compounding +1.65 to 3.55pp

These channels do not merely add. They multiply. More scientists freely collaborating across open borders in democratic institutions with global trade, working with factories that were never bombed, in a population that was never killed, on land that was never poisoned. Each channel makes every other channel work better. Compound interest applied to cooperation instead of corpses.

Now do the math your species invented and then refused to apply to itself. Global GDP per capita in 1900: $3.15K (95% CI: $2.31K-$3.97K). Today: $14.4K (95% CI: $14.1K-$14.7K). Growth rate: 1.23% per year for 124 years. Add the peace channels:

Scenario Growth Boost New Growth Rate GDP per Capita 2024 Multiple Extra per Person
Budget only (Costa Rica) +1.0pp 2.23%/year $48,637 3.4x richer +$34,262/year
All channels, low +1.65pp 2.88%/year $106,730 7.4x richer +$92,355/year
All channels, mid +2.6pp 3.83%/year

$334K (95% CI: $329K-$338K)

23.2x (95% CI: 23x-23.4x) richer +$319K (95% CI: $315K-$323K)/year
All channels, high +3.55pp 4.78%/year $1,032,170 71.8x richer +$1,017,795/year

Read the mid-range row again. The average person on Earth would earn $334K (95% CI: $329K-$338K) per year. The global average would exceed current US GDP per capita by 4x. The average person in sub-Saharan Africa, who currently earns $1,800/year, would instead earn roughly $42,000. Not from charity. Not from redistribution. From compound growth that was never allowed to happen because you spent the seed money on bullets.

Your species will now object that 3.83% growth is unrealistic. Japan did 7-9% for two decades after you dismantled its military. South Korea did 5-7%. Germany did 8%. They started from rubble. A world that never made the rubble, sustaining 3.83%, is not ambitious. It is arithmetic.

At the mid-range, the lost GDP is $319K (95% CI: $315K-$323K) per person per year times 8 billion people: $2.55 quadrillion (95% CI: $2.53 quadrillion-$2.57 quadrillion) in annual global output that does not exist. Every year. Growing. You are not just poorer by the cost of the bombs. You are poorer by the compound interest on every dollar the bombs prevented from being earned, invested, and reinvested for 124 years.

You discovered compound interest. Then you applied it to destruction instead of investment. Albert Einstein (who survived the wars that killed 200,000 of his fellow scientists) supposedly called compound interest the eighth wonder of the world. You turned it into the eighth plague.

The Grand Total: Everything War Has Cost Since 1900

Category Estimate (2024 USD) Method
Cumulative military spending

$170T

SIPRI + historical reconstruction
Property and infrastructure destruction

$45T (95% CI: $30T-$60T)

Sum of major conflict estimates
Environmental destruction and contamination

$5T (95% CI: $2T-$10T)

Annual estimates x century + catastrophic events
QALY value of lives lost

$1.26 quadrillion (95% CI: $837T-$1.67 quadrillion)

310 million (95% CI: 200 million-340 million) deaths x 27 (95% CI: 20-35) years x $150K (95% CI: $100K-$199K)/QALY
Compound opportunity cost (lost annual GDP) $2.55 quadrillion (95% CI: $2.53 quadrillion-$2.57 quadrillion)/year 6 channels stacked, 124 years compounded
Historical sunk cost $1.48 quadrillion (95% CI: $1.05 quadrillion-$1.89 quadrillion) Military + destruction + lives
Ongoing annual loss $2.55 quadrillion (95% CI: $2.53 quadrillion-$2.57 quadrillion)/year Compound growth penalty
Per capita impact 23.2x (95% CI: 23x-23.4x) richer Every person, everywhere

The historical tab is $1.48 quadrillion (95% CI: $1.05 quadrillion-$1.89 quadrillion). One quadrillion dollars, already spent, already lost. But the compound opportunity cost dwarfs even that: $2.55 quadrillion (95% CI: $2.53 quadrillion-$2.57 quadrillion) in lost annual output, every year, growing. The sunk cost is a receipt. The compound cost is a wound that never stops bleeding.

The headline number: the average person on Earth would be 23.2x (95% CI: 23x-23.4x) richer. The average human would earn $334K (95% CI: $329K-$338K) per year instead of $14.4K (95% CI: $14.1K-$14.7K). At current population, that is $2.55 quadrillion (95% CI: $2.53 quadrillion-$2.57 quadrillion) in annual output that does not exist. You are not living in a world that had wars. You are living in a world that is 23.2x (95% CI: 23x-23.4x) poorer than it should be.

You built a cemetery instead.

Hidden Costs of War

War destroys the hospital. Then there’s no hospital to treat the war wounds. Then people die of preventable diseases. Then the economy collapses. Then you have another war. It’s very efficient.

War destroys the hospital. Then there’s no hospital to treat the war wounds. Then people die of preventable diseases. Then the economy collapses. Then you have another war. It’s very efficient.

When you look at the secondary effects, the costs compound like interest at a bank run by sadists. Each consequence causes the next one, in a circle of misery that would be elegant if it were not so stupid:

  • Cities become parking lots (expensive to rebuild, poor for foot traffic).
  • Children miss school (they grow up to be uneducated adults, who start more wars).
  • Hospitals explode (the building you need to fix war injuries was destroyed by the war).
  • Farms get poisoned (everyone gets hungry, hungry people fight, see line one).
  • Millions get PTSD (they can’t work and need therapy for decades).
  • The lucky ones just die.
  • The unlucky ones live with the memory of having been unlucky.

The Other Receipt: When Governments Kill Their Own People

Everything above only counts what governments spend killing other countries’ people. It does not include returns on domestic investment.

Political scientist R.J. Rummel spent his career counting what he called “democide”: the murder of unarmed civilians by their own governments. Not soldiers. Not enemy combatants. Civilians. The people governments are supposed to protect. His final estimate: 262 million deaths (95% CI: 200 million deaths-272 million deaths) people murdered by governments in the 20th century alone20. That excludes all battle deaths in wars. This is just the bonus killing.

To be clear: that is more than every war death in the same century combined.

Here is the itemized receipt, sorted by body count:

Regime Period Estimated Deaths What Happened
China (Mao Zedong) 1949-1976 45-78 million Great Leap Forward famine (policy-induced), Cultural Revolution, land reform campaigns
Soviet Union (Stalin era) 1924-1953 20+ million Gulag system, Ukrainian famine (Holodomor), Great Purge, forced collectivization
Nazi Germany 1933-1945 21 million Holocaust (6M Jews), plus Slavs, Roma, disabled, POWs, political prisoners
Imperial Japan 1937-1945 6 million Nanjing massacre, forced labor, biological experiments, civilian massacres across Asia
Cambodia (Khmer Rouge) 1975-1979 2 million “Year Zero” forced agrarian revolution; ~25% of population killed in 4 years
Ottoman Empire 1915-1923 1.5-2 million Armenian Genocide, Assyrian and Greek genocides
Pakistan (Bangladesh) 1971 1-3 million Bangladesh Liberation War atrocities
Ethiopia (Mengistu) 1977-1991 1-2 million Red Terror, forced resettlement, engineered famine
Indonesia 1965-1966 500,000-1 million Anti-communist purge
Rwanda 1994 800,000-1 million Tutsi genocide; 100 days, mostly machetes
North Korea 1948-present 1-3.5 million Political prison camps, forced starvation, purges
Iraq (Saddam Hussein) 1979-2003 250,000-500,000 Anfal campaign, Marsh Arab destruction, political killings
Yugoslavia (Milosevic) 1991-1999 130,000-200,000 Srebrenica massacre, ethnic cleansing campaigns

This table only includes the largest cases. Rummel’s full dataset documents over 200 regimes172. The complete list is longer than this chapter.

Since 2000, the accounting continues: Darfur (~300,000 killed between 2003 and 2008)173, Syria (306,887 civilians killed in the first decade of conflict, with government forces responsible for roughly 91% of civilian casualties)174, Myanmar’s Rohingya (~24,000 killed by state forces since 2017)175, and others. No Rummel-style global update exists for the 21st century, but the running total since 1913 conservatively exceeds 263 million.3

A few observations from an outside perspective:

  • Communist regimes account for the largest share: 100-148+ million, depending on how you count famine deaths caused by policy. Communism did not just fail as economics. It failed as not-murder.
  • These are estimates. Governments that murder their own citizens tend not to keep meticulous records. In many cases, the records were destroyed by the same people who created the bodies. The true number is almost certainly higher.
  • Every regime on this list had an army. The army was frequently the instrument of democide. You are asking these institutions to redirect 1% of their budget. One percent. From the machinery they have historically used to murder 262 million deaths (95% CI: 200 million deaths-272 million deaths) of their own unarmed citizens.

The governments you are trying to negotiate with have, on average, killed more of their own people than foreign enemies have. The call is coming from inside the house. It has always been coming from inside the house.

This is not an argument against government. It is an argument for better incentive structures. The 1% treaty176 does not ask governments to be moral. It asks them to be slightly less expensive at killing. The difference between a government that spends 100% of its military budget on potential murder and one that spends 99% is $27.2B per year redirected to not-murder. That is the entire ask.


  1. This estimate is built from multiple sources. SIPRI data from 1988-2024 sums to approximately $65-72 trillion in constant dollars55,69. The Cold War era (1946-1987) adds roughly $50-70 trillion, reconstructed from US spending data (the US accounted for ~37-40% of global totals) and CIA estimates of Soviet expenditure. World War II cost all belligerents approximately $23 trillion in 2024 dollars164, World War I approximately $7 trillion, with another $3-5 trillion for interwar military budgets. The 19th century adds roughly $3 trillion (Napoleonic Wars, American Civil War, colonial conflicts, routine garrison spending). Pre-1800 military spending, estimated via GDP-share equivalence using Maddison Project historical GDP data, adds $4-20 trillion with enormous uncertainty; the Roman Empire alone spent an estimated $1-2 trillion over five centuries. The range is $150-225 trillion; $180 trillion is the central estimate. Roughly 75% of the total was spent after 1945, because global GDP grew 100-fold since 1900 while military burdens stayed at 2-5% of output.↩︎

  2. Built from non-overlapping categories: Rummel’s democide estimate of 264M (government murder of civilians, 1900-present, which explicitly excludes battle deaths20) + 39M military battle deaths + 30M collateral civilian war deaths166,167 - ~25M overlap adjustment (some civilian massacres counted by both Rummel and war casualty tallies) = ~310M. Range: 200M (White’s narrow definition) to 340M (Rummel high + all military).↩︎

  3. Post-Rummel table entries (North Korea post-1987, Iraq, Yugoslavia) draw on Human Rights Watch, UN tribunal findings, and country-specific academic estimates rather than Rummel’s dataset, which ended circa 1987.↩︎