I do not think that higher cost of doing business just applies to us. I would be willing to bet that our allies offer bigger pay incentives and quality of life than most/all of our opponents.
And again, if current levels are what they are and the Russians are not a threat, why NATO? Or at least, why NATO at it's current commitment level? Because they are a threat.
Russia is a threat to eastern Europe. Early on in this thread I mentioned the Baltic States, Poland, and Ukraine (and Georgia works as well). But their economy is smaller than Italy's, how much of a threat are they to NATO as a whole? Not a steroid infused NATO but NATO as it is today.
That list didn't include all of NATO (nor South Korea which might be scared of Chinese incursions). Even if we halve all their contributions like I did the US, I suspect combined we are more than double China and Russia combined.
Our problem with Russia is Putin is unstable. Our problem with China is far more systemic. China will keep growing and will present more problems. They have a longer view. They are far larger. Russia is the poodle that always barks and snarls, I don't want bit by it as it hurts but it isn't going to kill me. China is the Rottweiler that just stares over the fence. I may well be taken to the hospital from its bite.