Sunday, March 10, 2013
Defense Spending Myths: Cutting Through the Noise
Everyone everywhere will be affected by the sequester. Thus a heated debate on how the defense budget will be cut. The first debate came when the house passed a bill to cut the budget of the Pentagon. Most debate has risen from how the defense spending will be cut most coming up with theories and possible ways to cut the budget. The first theory that they come up with is to measure the percentage of GDP to see the capability of how the military will achieve quests. All that goes into the GDP comes from private consumption, investment, and defense spending. If the GDP goes down while the spending is decreased but many think that how much is spent should not be determined by the GDP but by the level of threat and strategy. The second myth would that defense budget cuts would result in unemployment. Most of the unemployed would come from job programs and defense industry. The third theroy is that the Defense Department will be cutting at least $487 billion over the coming 10 years. The main reasoning is because, projected plans would increase the defense budget. However war spending has decline over the last years since the end of the Iraq war and the decrease in sending troops to Afghanistan.
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Good Work. Thanks for posting.
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