It is no surprise that the defense contractors want to protect their profits by getting taxpayers to pony up more money.
Two months ago, Cato published a study by economist Benjamin Zycher, a senior fellow at the Pacific Research Institute, that showed that military spending contributes very little to GDP growth, and concludes that cuts would have very little long-term impact on GDP. On the contrary, Zycher estimates that cuts on the order of $100 billion a year would reduce costs in the wider economy by $135 billion per year. I wrote about that study when it was published here.
It's telling that the most quotable line from Mitt Romney's foreign policy speech Monday is a reheated zinger from Rudy Giuliani's 2008 Republican National Convention speech: “Hope is not a strategy.”
The Romney campaign is airing a television ad in Florida, and similar ads in other states, accusing President Obama of pushing “defense cuts” that “threaten thousands of jobs.”
Over the weekend, the Washington Post published a lengthy story by Dana Priest on plans to modernize the nation’s nuclear arsenal. It is difficult to comprehend the strategic rationale for the nation’s nuclear arsenal and force structure, and politics and parochialism (especially the jobs associated with the various nuclear labs) add a further layer of complexity.
I have a new piece up at ForeignPolicy.com this morning, commenting on the GOP’s apparent confusion about government spending and the effects that such spending has on others.
Speaking outside a helicopter museum in eastern Pennsylvania yesterday, Republican VP candidate Paul Ryan bemoaned the “irresponsible defense cuts” and subsequent job losses that would occur under the Budget Control Act’s sequestration spending cuts. That would be the same Budget Control Act that Paul Ryan voted for, and, at least initially, defended.
Cato has just released a new video, titled “The Truth about Sequestration,” that tells the real story about sequestration, the automatic budget cuts required by the Budget Control Act.
This week, likely on Wednesday, the full House of Representatives will take up the defense appropriations bill passed out of the Armed Services Committee in May.
The government can’t seem to do anything right! It can’t even streamline activities to cut costs without creating egregious cost overruns.