The study defines the role and place of military production in the reproduction process of the state in the modern context of the world economy development and identifies risks and prospects for further reproduction processes in the United States and other NATO member states in this regard. The author considers the general principles of the military expenditures and arms production’s impact on the reproduction processes of the state with a market economy. The research reveals that the increased military costs have a negative effect on the overall economic development of those countries of NATO that do not have unused production capacity and free material resources. The economic consequences of higher military expenditures and military production are obvious in the cyclical periods of overproduction. The research proves that the increased military production exacerbates contradictions of the reproduction process and burns out the crisis in countries with underdeveloped economic base.The study defines the role and place of military production in the reproduction process of the state in the modern context of the world economy development and identifies risks and prospects for further reproduction processes in the United States and other NATO member states in this regard. The author considers the general principles of the military expenditures and arms production’s impact on the reproduction processes of the state with a market economy. The research reveals that the increased military costs have a negative effect on the overall economic development of those countries of NATO that do not have unused production capacity and free material resources. The economic consequences of higher military expenditures and military production are obvious in the cyclical periods of overproduction. The research proves that the increased military production exacerbates contradictions of the reproduction process and burns out the crisis in countries with underdeveloped economic base.