Nominal defence spending can rise while defence takes a smaller share of GDP. The comparison puts the contemporary share near 2 percent, against roughly 3 percent in the early 1900s. Historical comparisons are further complicated by changes in whether items such as pensions and war memorials count as defence expenditure. A capital ship therefore competed inside a defence settlement that had less proportional room for exceptionally costly assets.
Chapter · 13:23-15:21
Defence's shrinking share constrains battleships
Rising cash budgets concealed a lower share of national resources available for defence as other public priorities expanded.