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

Moreover, demographic shifts were generally benign; there had been a peace dividend, which reduced the need for defense spending; and China was producing huge quantities of consumer goods to satisfy demand.

From MarketWatch • Jan. 7, 2026

"The logic is that it will provide the peace dividend," he said.

From BBC • Dec. 4, 2025

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

The fall of the Berlin Wall led to the peace dividend that cut military spending to 3% of GDP from 5% at the beginning of the decade.

From Barron's • Oct. 10, 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