Biden: Military support for Ukraine helps the American economy grow

Military assistance to Ukraine, which is already approaching $45 billion, is in the interests of the United States not only in the area of security but also in the economy.

Source. This was stated by US President Joe Biden in his address to the nation.

The weapons that Ukraine is using to resist the Russian invasion are provided from US military warehouses, and their stocks need to be replenished.

The money that Congress allocates to Ukraine is received by American manufacturers in the form of government orders, the president explained. For example, Patriot anti-aircraft missile systems are manufactured in Arizona, and artillery shells are produced in 12 states, including Pennsylvania, Ohio, and Texas, Biden said.

"Today, as in World War II, patriotic American workers are building the arsenal of democracy and serving the cause of freedom," he said.

The growth of production in the defense industry is reflected in economic statistics. In the first quarter, when the US GDP added 1.1% year-on-year, increased military spending accounted for one-fifth of that growth, or 21 basis points, Bloomberg calculated based on Commerce Department data.

And during the year of the war in Ukraine, from the second quarter of 2022 to the first quarter of 2023, the defense sector's contribution to GDP growth averaged 13%, while previously these figures were negative.

For Americans, the economic situation in the country is traditionally much more important than events abroad, and in a year's time, the US will hold presidential elections. Biden's statement, in which he points to the benefits of American manufacturers, may also be an attempt to overcome the resistance of Republican congressmen who are blocking an increase in aid to Ukraine.

In his speech, Biden used several other economic terms when talking about security. Supporting Israel and Ukraine is "vital" to the United States, "a smart investment that will pay dividends for American security for generations," he said.

If the United States stops helping both countries, it will jeopardize its global leadership, values, and alliances, the president said.

Background. As reported, Biden intends to send an urgent budget request to Congress for additional funding for Ukraine and Israel – $60 billion and $10-14 billion, respectively.