Sunday, May 1, 2011

Putting Defense Spending In Context

Those who are familiar with our blog are aware that I am no great fan of massive military spending and I do favor its reduction. However, those who believe that the primary solution to our spiralling debt is slashing defense spending are mistaken. As high as it may be, if we calculate it as a percentage of our GDP it's still at a historical low. On the other hand, since 1965, entitlement spending as a percentage of our GDP, has grown nearly 4 fold. It is and will continue to be the main engine that drives our growing national debt. If we do not get this under control:

It will continue to squeeze resources available for available discretionary spending, which means less money will be available for education, the environment, research and development, infrastructure, etc.

Eventually defense spending will be squeezed.

Taxes will go up, placing a greater burden on productive citizens and sectors of the economy.
Interest rates will be pushed upwards.

Any politician, be they Republican or Democrat, who is not willing to take the necessary steps to address the trillions in unfunded liabilities that await us, should under no circumstance receive your vote.

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