Thursday, February 4, 2010

Don't Ask, Won't Tell


Shhhhh. There is a secret that the government really doesn't want you to know about. Rest assured that if you don't ask, they certainly won't tell. Testimony on Capitol Hill this week would seem to indicate that the secret has something to do with homosexuals carrying machine guns.

No, this secret does not have anything to do with same sex relations. It also does not have anything to do with camel sex as the picture in this article would seem to suggest. This secret pertains to how the United States government has decided to freeze spending on almost all domestic programs for the next three years, while at the same time ratcheting up spending on national defense.

Hold on, what could possibly be the problem with that? Don't we need national defense? Aren't we in mortal danger every second of the day from anti-American uber jihadist paramilitary forces?

Ssshhhhhh. This is where the secret comes into play. What you aren't supposed to know (although the numbers are publicly available) is how the budget is actually allocated amongst the various national programs. Although certainly not straightforward and laced with caveats, the numbers are plain to see. What is going on with the budget? How about that for every $1 collected in tax revenue, around 50 cents is spent on "national defense". That figure contrasts pretty sharply with the 6 cents we spend on education or the 5 cents we spend on healthcare.

So what? Who doesn't like fighter jets and nuclear bombs? We have to keep America safe from terrorists and rogue states, and to do that we have to spend money on national defense, especially now. So we will spend a bit extra now, and then we can spend money on other things as soon as Al-Queda is a charred spot on the side of a mountain. Right?

Unfortunately, national defense spending has been rising each year for at least the past 10 years. More unfortunately, Al-Queda is still not a charred spot, and more than 50 cents on the dollar is still going to military spending. How much money is that exactly? Said another way, the United States as of 2008 accounted for more than 48% of the world's military spending. Even the much loathed financiers of our national debt, the Chinese, were a distant second at around 8% (despite having a military force over 3x the size of the US). Russia and Iran aren't even blips on that radar. So if the US accounts for half the world's military spending, in a nutshell the US spent as much as everyone else, combined. Here is my question: Why?

Is the rest of the world foolish or does everyone else have it out for us? Theoretically it could be both. However, I tend to think about it in simpler terms. If the rest of the world has foolishly not been investing in military spending for the past few decades, could they ever possibly catch up considering the huge capital costs and the relatively miniscule economies of these countries compared to ours? Take Egypt for example. It has the largest non-oil based GDP in the Middle East. Egypt is not a huge supporter of American politics, and has been the home to terrorists including some of the 9/11 hijackers. Each year the US spends 20x more money on defense spending than the entire Egyptian national budget. That means that it would take Egypt more than 40 years to spend as much money as the US did just this year if they spent 50% of their national income on military spending (which they currently don't).

Let's put the real critical questions on the table because this certainly isn't a matter of us reacting to other countries not liking us.

Question: With the national debt swelling to unsustainable levels, why is there so much importance placed on defense spending? When budgets get cut, don't companies start with the areas that will have the biggest impact on company costs?

Question: How does the money that we pay towards the national defense budget help you as your community struggles with an unemployment rate of over 10%? Sure, most people will enlist if they have no other job opportunities, but shouldn't serving in the military be a choice to serve and not a decision made out of financial necessity?

Question: States are underwater, and city services (including schools, fire departments, and police forces) are being cut drastically. Do you think that national priorities are in line with reality? If the whole goal is to make America safer, why would we be so quick to cut-back on services that are linked directly to crime rates?

Question: Do you think that the announcement this week that Al-Queda is guaranteed to strike the US in the next six months is a clever way for special interest groups to avoid inclusion in the 3 year government budget freeze? Terrorists will always try to hurt citizens of this country. That does not mean that all the money in the defense budget is going towards stopping them. Defense spending might be better deployed if it addressed the real source of terrorism (poverty, lack of education, foreign propoganda) instead of always focusing on stopping the by-product of terrorist theology.

The bottom line is that a whole lot of money is being spent on goods and services that America truly doesn't need. These resources could be reallocated in literally thousands of ways that actually could make this country safer, and have a more tangible and immediate impact. It is a sad day when government spending for domestic programs meant to assist struggling families is frozen in favor of the construction of a few more missiles that will never be used, arms that will be sold to a foreign power, and technology that will sit on a shelf.

This article is certainly not advocating that America cross its fingers and hope people will leave us alone. It certainly is not advocating that money be diverted from military benefits, veteran care, and ongoing supplies for troops in harm's way. Hell, it is all for spending on strategic national defense initiatives. The classic fear mongering tactics associated with defense spending cuts cloud the simple fact that conventional warfare is all but over. China's hacking of Google, and the guerrilla fighting in Iraq and Afghanistan point to that exact conclusion. So why doesn't our planning and budget process evolve alongside our tactics to reflect that reality. Tactical deployment of our financial capital is just as important as a cohesive national defense strategy. If this country wants to truly be involved in nation building, why not do more building and less fighting. For more truly mind boggling stats: Wow, click here for an eye-opener.