Then why over 5000 F-4 were built when the US population was around 200 million?
I bet the US could build over 5000 F-22 if it really wants to now that the US population is over 310 million.
It has to do with multiple reasons, some of which I will try to explain.
First, Technology. Newer technologies are decidedly more costly to develop and install. With Fighters becoming more and more sophisticated, their costs are obviously going to increase. Though the increase isn't as much as you'd think, I will explain that later on.
Second, comparing older fighter capabilities to newer ones. Don't assume that the F-4 is the equivalent of an F-22. If I had to choose between 1 F-22 and 6 F-4s, I'd pick the single F-22, because it would be able to take out the 6 F-4s without a single scratch and at a record time. That is another reason for fewer fighters being built. There is just no need to build a thousand fighters, when you only need a few hundred to do the same job, and even excel at it.
Third, multi role functionality. With modern fighters increasingly becoming more and more capable, they're able to replace dedicated machines. Instead of having a separate light bomber and a separate air superiority fighter, why not just combine the two roles? Sure it costs more in the short term, but long term effects of owning less make maintenance easier and cheaper, because you only have to buy spares for one plane, instead of two. So, it is only expensive in the short term. (less in more)
Before I get to my fourth and fifth points, I'd like to point out that I'm NOT an economics student, and it is one of my weaker subjects. Having said that, I'll try my best to explain the economics behind the increase and decrease in fighter costs as best as I understand them.
Fourth, inflation. Don't assume that fighters are getting super expensive, actually, the price expense is not as much as you'd think. For one thing, the dollar today is significantly cheaper than it was 30+ years ago, so because of the inflated dollar price, the fighter costs "more" to compensate. This has to be done because if corporations don't adjust for inflation, they end up losing money. Why do you think the HAL Tejas costs "more" than it did when it was initially conceived? Inflation of the Indian rupee.
Fifth, and international sales. This sort of relates to the fourth point. This also brings up the four laws of supply and demand:
- If demand increases and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.
- If demand decreases and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.
- If demand remains unchanged and supply increases, a surplus occurs, leading to a lower equilibrium price.
- If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher equilibrium price.
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Click here for more info on supply and demand)
If we look, the F-22 fighter was never offered on the international market, thus the demand was relatively unchanged in the beginning, because only the USAF was the only one able to order the fighters. Later on, the Pentagon actually ended up cutting the orders, because of cost, which decreased the demand of the fighters, which resulted in a shortage of supply, (because of a loss of jobs, and decrease in manufacturing) so the prices hiked.
If we look at the F-16 and F-35, they'll show that if there is a higher demand and surplus in supply, the cost will lower. This is why the F-16 was relatively cheaper than other fighters on the market at the time, because there was massive demand for it. If only the US ordered the F-16, the price of the fighter would easily be double, if not triple the amount. Currently, the F-35 (the most expensive fighter program in the world) is trying to replicate the F-16's success, and lower the price of the fighter by doing the exact same thing. If you notice, every time a new nation announces their intention to buy the F-35, the price of the F-35 decreases, because of an increase in demand, and the expected supply increases to a surplus, but when you see a nation announce that they're pulling out of the F-35 project, or have intentions to reconsider the purchase, the demand decreases, and the expected supply decreases to a shortage, which increase the costs.
Another more recent example of this is the JF-17, which is relatively cheap already, but the PAF is desperately looking to find buyers or potential partners so it can lower the cost of developing and manufacturing the fighter for it's own air force. If PAF can achieve this, the JF-17 would undoubtedly be the cheapest and most cost effective fighter on the market (for it's type).
I hope this explains well enough why newer fighters are more expensive than their predecessors.
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Oscar
What do you think?