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Marketplace®

Daily business news and economic stories
Episode 1101Feb 21, 2024

NATO’s place in the global economy

An explainer on NATO and why it matters.

BRUSSELS, BELGIUM - APRIL 27: The NATO flag is seen in the centre among the flags of the NATO member countries at the NATO headquarters building on April 27, 2023 in Brussels, Belgium. The European Union bodies define the direction and political priorities of Europe and the Belgian capital was chosen for its location being halfway between France and Germany, historical rivals and allies in history that paved the way for European integration. Various international institutions and NGO's are also based in Brussels, such as NATO. In recent times, there has been discussion of a possible relocation of EU agencies to a different area of the city.
BRUSSELS, BELGIUM - APRIL 27: The NATO flag is seen in the centre among the flags of the NATO member countries at the NATO headquarters building on April 27, 2023 in Brussels, Belgium. The European Union bodies define the direction and political priorities of Europe and the Belgian capital was chosen for its location being halfway between France and Germany, historical rivals and allies in history that paved the way for European integration. Various international institutions and NGO's are also based in Brussels, such as NATO. In recent times, there has been discussion of a possible relocation of EU agencies to a different area of the city.
Omar Havana/Getty Images

After former President Trump’s recent digs at NATO, officials at a global security conference in Munich over the weekend weighed what European countries would do if Trump were re-elected and abandoned the United States’ treaty commitments.

NATO was established in the early years of the Cold War. Today it has 31 member nations, including the United States, and economically speaking, the alliance matters.

“We have entered an era of pretty profound geopolitical instability. And what NATO helps do is create a foundation for more security and stability for global trade relations,” said Kathleen McInnis, senior fellow at the Center for Strategic and International Studies. “When that gets disrupted, that becomes a problem for markets. Markets like stability.”

On the show today, McInnis discusses the history and future of NATO, why the alliance has persisted for almost 75 years and how the global economy would react if the U.S. suddenly withdrew from it.

Plus, our takeaways from the testimony of Fulton County, Georgia, District Attorney Fani Willis. And how SpaceX’s national security contracts continue to give Elon Musk international influence.

Later, why cats get stuck in trees. And, a former NASA astronaut was wrong about what we (earthlings) gain from going to space.

Here’s everything we talked about today:

We want to hear your answer to the Make Me Smart question. You can reach us at makemesmart@marketplace.org or leave us a voicemail at 508-U-B-SMART.

The Team