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Economics

Opportunity Costs in Government Budget Allocation

Quick fact

Economists estimate that the opportunity cost of the U.S. military budget (over $800 billion in 2023) could cover tuition-free public college for all students and eliminate medical debt, showing that every weapon system has a hidden price tag in social programs.

Why this is interesting

If your government spends $10 billion on a new fighter jet, why should you care about the hospital that wasn't built? The real price of the jet isn't the money—it's everything else that money could have done.