War Economy: How Defense Corporations Profit from Global Conflicts
There are countries that lose homes and people, but on the other side, defense corporations earn millions by manufacturing the weapons that cause that destruction. Defense companies are organizations and corporations that manufacture weapons, arms, military technology, and equipment for national armies and governments. They mainly profit during wars and conflicts because of government contracts and other deals. In times of peace, when people are suffering and rebuilding, profits are low for weapon suppliers. But during destruction, their profits soar.
Wars, whether small or large, create massive demand for arms, weapons, aircraft, and war technology. Governments willingly spend billions during conflicts, boosting the profits of defense companies by 100–200%. But is it ethical to profit from war? How is it justifiable to make money while others suffer? Is peace not profitable? Are billions of dollars worth the destruction of lands, homes, and lives? As Ron Paul said in 2003, “War is never economically beneficial except for those in a position to profit from war expenditures.” That quote reflects a brutal truth: while the poor suffer, the powerful benefit from their pain.
Some of the big players profiting during conflicts include BAE Systems, Raytheon Technologies, Lockheed Martin, and many more. Their stock prices rise during wars, benefiting not only the companies but also their investors and the governments that award them contracts. Most of their revenue comes from these contracts. In 2022, the top 100 arms companies made around $597 billion in revenue. The U.S. approved $206 billion in foreign military sales, mostly benefiting the “Big Five” defense companies. In 2023, that number rose to $238 billion—an increase of almost 16%. The U.S. defense budget for 2024 is nearly $1 trillion. One. Trillion. Dollars. Just for defense.
Lockheed Martin received $75 billion in Pentagon deals in 2020 alone. Its stocks rose by 37% during the Russia-Ukraine conflict in 2022. The company also spent $14 million lobbying the U.S. government and $5.5 million in political contributions, $1,542,500 of which went to both Republicans and Democrats. That gives us a glimpse into how much they stand to gain annually. Shouldn’t the government be taxing them more during conflicts? Don’t they want peace? On one side, a CEO celebrates with champagne over rising stocks. On the other, a mother carries her child’s severed head through the rubble. One enjoys. One dies.
Israel achieved a historic milestone in 2023, reaching $13 billion in defense exports. Missiles, rockets, and air defense systems were their top exports, highlighting how advanced their weaponry has become during wartime. EU defense spending increased by more than 30% between 2021 and 2024, reaching €326 billion. The Syrian Civil War caused 5.7 million people to flee as refugees. Investors now see defense companies as a “safe bet” during conflicts, hoping to earn even more by buying their stocks.
But investing in war is deeply unethical. It leads to underinvestment in critical sectors like education, technology, energy, and healthcare. Countries like Germany and Sweden are spending more on defense than ever before, making it highly profitable for arms manufacturers. A missile costs around $100,000. Feeding a refugee child three meals a day for a year? Less than $1,000. And yet, guess which one gets funded first?
And still, not all wars are treated the same. When Russia invaded Ukraine, the world erupted in outrage. But when Saudi Arabia attacked Yemen, those same nations sold billions in weapons to the attackers. Where is the justice in that? How can anyone justify such hypocrisy? How can a government claim to want peace when it is the one accepting millions of dollars in lobbying from defense companies?
Can we hope for a future with headlines like this?
“2030: Top ‘Big Five’ Defense Companies in U.S. Shift to Peace Tech. Triple Revenue Compared to Past Decade.”
Only then will peace become profitable. Only then will we see an end to destruction and invasion.
If war is a business… then who is the client? Who decides who lives, and who dies? We can’t always put the blame on them. We have to hold ourselves accountable too. Defense companies exist, yes, but they become powerful because of us—because we stay silent. If we start boycotting them, stop investing in them, and demand transparency, their power will shrink.
We’re not just random beings drifting through life—we are the future generation. We must stop glorifying war tech and raise our voices to end these killings. If we begin now, maybe our children won’t have to witness wars the way we did. We don’t have to be leaders to lead and create change. We just need to question them and be loud. We, as youths, have the right to confront them and boycott war-glorifying brands.
The views and opinions expressed in this article/paper are the author’s own and do not necessarily reflect the editorial position of The Spine Times.
Jafrin Farid
The writer is a business student with a growing interest in the ethics of corporate involvement, conflict research, defense economics, and corporate influence in war.
