Except we don't spend 700 billion on NATO. That figure is the entire US annual defense budget.
First, disregard any of the propaganda Trump has ever uttered about NATO. He doesn't understand how it works. The actual NATO budget is quite small, a $1.4 billion military budget and a $250 million civilian budget. The US pays a relatively modest part of that total, about 22 percent. The percentage is based on a formula which includes the size of each member state’s economy. This mainly goes to pay for the NATO headquarters in Belgium and the quite thin military infrastructure which coordinates and integrates the various member-country militaries which make up the alliance. That’s it. The whole thing is budgeted at less than $2 billion. The percentage the US pays is reasonable relative to the size of our economy.
The vastly greater amount is the military budgets of all the member countries combined, which was $921 billion in 2017. The great majority of that is made up of the US military budget. In 2017 the US military budget was $610 billion. The coming fiscal year puts it at $700 billion that Trump chose to increase 10% during peacetime! Some of that difference is driven by the fact that the US economy is far larger than any individual NATO member state. But the US also spends much more on a per-capita basis. Staying with the 2017 numbers, the US spends 3.61 percent of GDP on defense. The next major NATO member is the UK at 2.36 percent while most other major NATO powers are significantly under 2 percent. (France, 1.79 percent; Germany, 1.2 percent; Canada, 1.02 percent.)
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