The Taliban’s takeover of Afghanistan, including the capital city of Kabul, has triggered concern across the world, and rightly so. While the humanitarian and strategic implications of the US’s withdrawal from Afghanistan are likely to be catastrophic, the fallout of its economic actions (detailed below) is likely to be equally, if not more, profound for the world as we know it today. World Bank statistics on the share of military spending in US GDP – it came down from just under 10% in the 1960s to just above 3% by the end of 1990s – proves this point. With the US out of both Iraq and Afghanistan now, its military spending is bound to come down further. The US assumed this role in the period after the Second World War, triggering what is described as the Golden Age of capitalism.

Source: Hindustan Times August 16, 2021 23:15 UTC