The military-industrial complex is pulling out all the stops to
ensure that not one dime of its vast federal largess is taken away even
as the nation faces nearly $15 trillion in debt. Defense contractors,
Representatives and Senators, and current and former Defense Secretaries
are working together to thwart actual and potential cuts in defense
spending resulting from the August debt ceiling deal.
The deal calls for $350 billion in defense cuts over 10 years — an
average of $35 billion per year. In addition, it tasks the newly created
congressional super-committee with finding an additional $1.2 trillion
in savings over that same time period. Should the committee fail to come
to an agreement on those savings, automatic cuts totaling the same
amount, split evenly between defense and domestic spending, are slated
to occur. If that took place, defense spending would then be reduced by
$600 billion, an average of $60 billion per year.
That may sound like a huge dent in the Pentagon’s budget, but there are
two things to keep in mind. First, those cuts are almost certainly
reductions in the projected rate of budgetary growth, not actual
reductions in spending. Second, total defense spending is around $1
trillion, according to economist
Robert Higgs, of which $676 billion was budgeted to the Defense Department — up from $432 billion in 2001.