peace dividend

American  

noun

1. money cut by a government from its defense budget as a result of the cessation of hostilities with other countries.

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peace dividend British  

noun

1. additional money available to a government from cuts in defence expenditure because of the end of a period of hostilities

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Etymology

Origin of peace dividend

First recorded in 1985–90

Example Sentences

The end of the Cold War and the resulting peace dividend helped slow the share of federal spending to 18% of GDP by the decade’s end from over 21% at the beginning.

From Barron's • Jun. 26, 2026

Hartnett repeats a view from last week’s Flow Show strategy note in which he picked consumer stocks as his preferred contrarian play to benefit from the peace dividend should the conflict with Iran conclusively end.

From MarketWatch • Jun. 16, 2026

That’s not all: Mr. Witkoff seems to believe that the peace dividend on offer can benefit Ukraine too.

From The Wall Street Journal • Dec. 1, 2025

It was in 1996 that then-President Jacques Chirac took the decision to end military service, as part of the peace dividend from the fall of the Soviet Union.

From BBC • Nov. 27, 2025

Tire peace dividend changed the region once again, and now it is best known for the great gambling casinos of Mohegan Sun and Foxwoods and for the pharmaceutical researchers of Pfizer.

From "The World Is Flat" by Thomas L. Friedman