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“Why the U.S. Can and Should Cut Military Spending” The National Security Forum Reno, Nevada November 13, 2012. Christopher Preble. Source: http://www.downsizinggovernment.org/. Department of Defense Budget Authority, 1948-2012. Source: Fiscal Year 2012 Green Book - PowerPoint PPT Presentation
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““Why the U.S. Can and Should Why the U.S. Can and Should Cut Military Spending”Cut Military Spending”
The National Security Forum The National Security Forum Reno, NevadaReno, Nevada
November 13, 2012November 13, 2012
““Why the U.S. Can and Should Why the U.S. Can and Should Cut Military Spending”Cut Military Spending”
The National Security Forum The National Security Forum Reno, NevadaReno, Nevada
November 13, 2012November 13, 2012
Christopher PrebleChristopher PrebleChristopher PrebleChristopher Preble
Source: http://www.downsizinggovernment.org/
Department of Defense Budget Authority, 1948-2012
Source: Fiscal Year 2012 Green BookTable 6-8 – Dept. of Defense BA by Title
Figures in billions of constant FY 2012 dollars.
$0
$100
$200
$300
$400
$500
$600
$700
$800
Global Military Expenditures, 2010
Department of Defense Budget Authority, 1948-2012
Source: Fiscal Year 2012 Green BookTable 6-8 – Dept. of Defense BA by Title
Figures in billions of constant FY 2012 dollars.
$0
$100
$200
$300
$400
$500
$600
$700
$800
DOD Budget War Spending
Department of Defense Budget Authority, 1998-2012
Source: Fiscal Year 2012 Green BookTable 6-8 – Dept. of Defense BA by Title
Figures in billions of constant FY 2012 dollars.
$0
$100
$200
$300
$400
$500
$600
$700
$800
DOD Budget War Spending
Department of Defense Budget Authority
Actual and Projected, 1998-2022
Source: Fiscal Year 2012 Green BookTable 6-8 – Dept. of Defense BA by Title
Figures in billions of constant FY 2012 dollars.
$0
$100
$200
$300
$400
$500
$600
$700
$800
DOD Budget War Spending Sequestration Current Baseline
Department of Defense Budget Authority
Actual and Projected, 1948-2022
Source: Fiscal Year 2012 Green BookTable 6-8 – Dept. of Defense BA by Title
Figures in billions of constant FY 2012 dollars.
$0
$100
$200
$300
$400
$500
$600
$700
$800
DOD Budget War/OCO Sequestration CW Average Current Baseline
AIA Studies
• In October 2011, George Mason University Professor Stephen Fuller argued that a reduction of $45 billion in DoD procurement spending would result in a decline of about $86.5 billion in GDP in 2013, and the loss of 1,006,315 full-time, year-round equivalent jobs.
• Fuller updated his findings in July 2012, and now concludes that the automatic cuts under sequestration, both defense and non-defense, will reduce the nation’s GDP by $215 billion, and cost 2.14 million jobs.
Zycher Cato Study
• On August 8, Cato published a study by economist Benjamin Zycher, which concluded that a reduction of $100 billion per year, nearly twice what is called for under sequestration, would reduce costs in the wider economy by $135 billion per year (the difference due chiefly to the excess burden of taxation).
Zycher Cato Study (continued)
• Even accepting Fuller’s decision to ignore the benefits that would flow from shifting resources from less to more productive uses, Zycher shows that Fuller’s multiplier is grossly inflated.
• Military spending contributes very little to GDP growth, and cuts would have very little long-term impact on GDP.
-10-8-6-4-202468
10
Year:QuarterReal GDP Growth Defense Contribution
Defense Contribution to Real U.S. GDP Growth, 2000-2011 (Annual Pct)
-10-8-6-4-202468
10
Year:QuarterReal GDP Growth Private Investment Contribution
Private Investment Contribution to Real U.S. GDP Growth, 2000-2011 (Annual Pct)
The Bottom Line on Sequestration, Military Spending and the Economy?
• Cuts currently under consideration are modest, and consistent with past post-war drawdowns.
• The United States will maintain a sufficient margin of military superiority over any conceivable combination of rivals even if it spends far less.
• Cuts in military spending should benefit the economy, and certainly in the long run.
Where Should We Be Going?
Real cuts are politically feasible – and strategically wise – if we revisit some basic
premises.
Strategic Misapprehensions
• At least four false, expensive, and bipartisan assumptions inhibit real spending cuts.– Counterterrorism requires nation building (aka COIN),
and we can master nation building.– Alliances distribute our defense burden rather than
adding to it.– Primacy pays; we should try to run the world.– Security threats are imminent, and require urgent
attention and persistent global presence.
Strategic Misapprehensions
• At least four false, expensive, and bipartisan assumptions inhibit real spending cuts.– Counterterrorism requires nation building (aka COIN),
and we can master nation building.– Alliances distribute our defense burden rather than
adding to it.– Primacy pays; we should try to run the world.– Security threats are imminent, and require urgent
attention and persistent global presence.
three
Strategic Misapprehensions
• At least three false, expensive, and bipartisan assumptions inhibit spending cuts.– Alliances distribute our defense burden rather than
adding to it.– Primacy pays; we should try to run the world.– Security threats are imminent, and require urgent
attention and persistent global presence.
New Rules for the 21st Century
• We should not engage in military operations overseas unless there is a compelling U.S. national security interest at stake.
• There must be strong public support for the mission.
• The mission must be clearly defined, and reasonably attainable.
• We should remember that war is a last resort.