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Human defence expenditure has increased due to the need for permanent military and police forces, which has led to the creation of a perpetual fear industry. The so-called fear industry refers to the industry created due to real or perceived fear, without this fear, the industry cannot be created. Most defence economic studies (both military and police) focus on various empiric aspects such as opportunity costs, GDP growth, public expenditure and defence industry taxes. However, this study focuses on the development and explanation of the theory behind the creation and death of this preputial industry of fear. This study also presents the concept of social GDP and free GDP, which can help to present the long-term economic effects of the reduction or possible elimination of defence spending by national governments. Decreased defence spending generally has economic and social benefits for the general public. In the long run, rising costs of the defence industry (military and police spending, etc.) and other miscellaneous social issues can lead to civil unrest or possible civil wars, which can have a devastating impact on global economies in the long run. It is therefore in the interests of global economies to begin to reduce expenditure, to seek cheaper and more acceptable alternatives, and eventually to get rid of these fear-based expenditures.

Continued increases in military and police spending can lead to economic collapse