We could have a whole discussion about geopolitics, but lets not. This is after all a thread about the AI bubble and what comes next.
The 2% target is a economic expenditure target, not a military readiness target. I think it is kind of obvious that the west is supply constrained in arms, so what happens if every state tries to increase expenditures is that arms become more expensive. Profits go up, stock price go up, and presto you have a possible foundation for a new bubble.
I happened to come across an article mentioning the Robinson–Patman Act (from 1936) in relation with wage fixing by algorithm.
From Wikipedia: "a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination"
It might be relevant here. Obviously I am not a US lawyer specialised in monopoly law.