What role do military alliances play in a capitalist system?

Given our military strength, other countries will be interested in entering defense alliances with us. As a condition for admission, we require each country to get on a path to capitalism: strengthen the protection of individual rights by reducing taxes and government spending, roll back regulations, and eliminate tariffs and subsidies. And as we don’t want to foot the bill for defending other countries, each country pays its share of the costs to maintain the defense alliance.

Smaller countries feeling threatened by larger neighbors will probably transition to (if already having some level of defense agreement with the U.S) or join the new alliance early. As their “leading by example at home” policies start to bear fruit—think a number of Singapore or Baltic states like economies emerging around the world—others will become interested. And someday even countries like Russia, Cuba, Iran and China may join. By that time, with a little stretch of the imagination, there may not be anybody left to defend ourselves against militarily.

The members of our current defense alliances (NATO, etc.) are mostly welfare states with a mix of free market and government controlled areas of society. As we launch the new explicitly capitalism-inspired alliance, some are likely to join early while others are less inclined to get on a path towards less welfare-statism. Being mostly longtime allies, we allow them significant time to decide whether to join, and if the decision is “no,” a transition period to take on their own defense.

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