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The Indicator from Planet Money

Should NATO be pay-to-protect?

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 13 May 2026

⏱️ 9 minutes

🧾️ Download transcript

Summary

NATO was formed after World War 2 as a collective security alliance that would prevent future world wars. But President Trump sees NATO more like a transaction between countries where allies have to pay up or be left undefended. On today’s episode: How NATO is actually funded, why this longstanding alliance is under strain, and how the U.S. could pay the cost for these frayed relationships.

Fact checking by Sierra Juarez.

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Transcript

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0:00.0

NPR.

0:02.1

This is the indicator from Planet Money.

0:13.4

I'm Adrienne Ma.

0:14.3

And I'm Whalen Wong.

0:15.7

The Pentagon's decision to pull some American troops out of Germany

0:19.1

represents a fresh chill in the relationship

0:21.8

between the U.S. and its European allies in NATO.

0:25.6

The North Atlantic Treaty Organization is one of the pillars of the post-World War II global order.

0:31.2

And historian Heather Cox Richardson says it has yielded huge benefits for the U.S. and the rest of the world.

0:37.4

This is a defensive alliance that has this extraordinary payoff.

0:42.2

Look even at hand now at how much the United States of America is spending in Iran alone.

0:47.8

That's a billion dollars a day.

0:49.8

So if you think about this not as a tit for tat and you think of it more as a concept of how the world should operate, NATO is really cheap.

0:59.8

President Trump, however, does talk about NATO like it's a tit for tat.

1:04.4

He was once quoted as saying at a campaign rally, if they're not going to pay, we're not going to protect.

1:13.0

And that makes NATO sound more like a protection racket than a strategic alliance. So, is that what NATO is?

1:18.5

Today on the show, we examine Trump's view of NATO, how this long-standing alliance is becoming

1:23.8

strained, and how the U.S. could pay the cost both politically and economically

1:28.5

for those frayed relationships.

1:35.3

Historian Heather Cox Richardson writes a newsletter called Letters from an American.

1:39.9

It has around 3 million subscribers.

1:42.5

Her focus is explaining how we got to our current moment.

...

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