The main problem is:
The bigger the military production = larger amount of money is needed every year to sustain it
The more military production increases, larger amount of money is needed to be paid every year.
If money is not paid, military production falls apart and country becomes vunerable.
However, if countries constantly increase military production (which they have to do to secure dominance), then there is constant decrease in the amount of money left for general population and that means constant increase in poverty.
Resources are limited and the more goes to military, the less goes to population.