During his campaign, Trump made it clear that he was looking to expand the military. He believes that the Obama administration did no justice to the military and only weakened it. Instead Trump’s plan of action seems to be to increase military spending.
He is hoping that this will help to fight against terrorism. The increase in military spending will also be to enlarge the overall military’s force. Trump is actually hoping to raise the number of soldiers by 90,000.
He also plans to expand in the airforce and the navy. He wants the Navy’s fleet to be 350 strong. Trump also plans on adding 100 more fighters to the air force. This and a promise to strengthen nuclear and missile defense system, actually leaves a lot unclear though.
How this will Increase Military Spending
Building a 350 ship Navy alone isn’t cheap. It is expected that the subs alone will cost nearly $22 billion. This doesn’t include the increase in the airfare or the increase in soldier numbers though. In the end the increase could be anywhere from $500 billion to nearly $1 trillion.
Defense stocks experienced an increase the morning following the announcement of Trump’s election. BAE System and Raytheon went up over six percent. Companies like these will greatly benefit from the increase in defense spending that is sure to come in the following years.
This is especially true if Trump eliminates the budget caps that have been placed on defense spending in the past. This is possible now since Republicans have a majority in the House and the Senate. All Trump would have to do to increase military spending is to maintain a healthy relationship with Congress.