We need to redirect the conversation that will start in Washington tomorrow. It’s not really a conversation, it’s a negotiation. During that negotiation I want to suggest -- no demand -- that Social Security & Medicare/Medicaid be taken off the table. In its place…. I offer Department of Defense (DOD) cuts. Give me a few minutes of your time to explain why we should all be demanding these cuts.
Social Security has not contributed one dime to our national debt, it’s a separate trust that is funded through a payroll tax. This program supports our elderly during their golden years and has allowed them to weather the downturn better than most. The plan is fine; it may need some tweaks in a few years, but so will we all. It’s not a Ponzi scheme concocted by the government to cheat everyone under the age of 50 in to giving up “Money For Nothing” (ohh Dire Straits).
Medicaid is a means-tested program that helps the poorest among us, in particular the elderly, the blind, and children. In 2009 Medicaid supported 61.8 million people; 28 million of those were children. Medicare is a national social insurance program, administered by the U.S. federal government that guarantees access to health insurance for Americans ages 65 and older. In 2010 Medicare supported nearly 48 Million Americans, 40 million elderly and 8 million disabled.
Both public programs have seen their cost-spending per beneficiary slow significantly compared to private health insurance companies. This trend is expected to continue for the next decade.
I have noticed that NO ONE is talking defense cuts anymore, Democrats or Republicans. I suspect it’s due to the defense industry corporations -- run by retired military-- and their very powerful lobbying block. The industry lobbies all of congress, and lobbies very well.
Let’s start with the budget. The below chart depicts the total DOD budget outlays (yearly spending) in constant 2013 dollars. Constant dollars means inflationary factors have been adjusted (added or subtracted) to allow for an equal comparison of yearly spending levels. To give you an idea of how much influence this has on the numbers, back in 1960 DOD spent 41 Billion dollars in 1960 dollars. In today’s dollars that 41B = 397B. You can check these out in table 6-11 “DOD Outlays by Title”, or try out the online CPI inflation calculator. The online calculator does not include many custom adjustments that DOD uses.
As you can see DOD spending levels are cyclical, moving up in wartime and build ups (Reagan) then decreasing during peacetime. We are due for some peace dividends. Why not use some of that money on the elderly, the poor, and the unemployed. Use it for some infrastructure spending instead of another new multi-billion dollar weapons system. We’re talking billions here; that amount can repair a lot of bridges and roads. I drive under a bridge every day that is being held up by wooden blocks in case it collapses. There are thousands of deteriorating bridges across the county in need of repair. Recognize any bridges near you?
The retort from our pro-defense spending congressional reps is; we are spending that money on the troops. I for one --being a veteran-- believe our troops deserve the best of everything, pay, food, quarters and health care. So I took the same time line above and instead of budget outlays the chart below show total active duty man/woman numbers (total enlisted). From Table 7.5 DOD Manpower
It’s hard to correlate anything with the first graph isn’t it? You can pick out the Vietnam War and the Clinton draw-down. Notice that the Reagan & Bush build ups didn’t involve a significant increase in active duty numbers.
You also hear congresspersons every now and then say we need to pass this budget to support the troops. What does that mean? Below is the yearly pay for those active duty numbers above. Same deal here the figures are in constant 2013 dollars for an honest comparison. From Table 6-12 DOD Outlays by category.
Again, I don’t see any correlation to the defense spending chart. I can make out the Vietnam War and Clinton reduction, but I see no significant increase in pay during the Reagan and Bush build-ups. A pay raise can be seen anytime there is a rise in the active duty military pay chart with no corresponding increase in the yearly active duty chart.
Where did all that money go? It sure looks like it went to the defense corporations. President Dwight D. Eisenhower warned us of this way back in 1961. In a speech he discussed the dangers of a “military industrial complex” growing too politically powerful. His prediction has come true and the American people have been over-paying for years.
How much does the U.S. spend relative to rest of the world? Surely our allies like the UK, Germany, and Australia must spend as much on their militaries. How much does our biggest geopolitical foe spend? The below chart looks at worldwide Defense spending per country in 2011, data is from the Stockholm International Peace Research Institute (SIPRI) who graciously allowed its use.
Well that tells a story doesn’t it? Add up the rest of the worlds (128 Countries w/ data available) spending at $988B compared to our $700B. Are we shouldering too big a portion of the world’s security? I believe in the U.S. having a strong military, but how much is enough? Where does that money go? Not for additional troops or their pay, this money is going into the pockets of corporations like Halliburton, Lockheed Martin, General Dynamics, and Academi (formally Xe, formally Black Water). This is who gets our tax dollars; they use their political might to extend programs that even the DOD does not want. Unneeded weaponry gets procured and insufficient gear gets deployed all because a lobbied politician inserts (or removes) language in the yearly DOD discretionary budget.
I am not suggesting slash the DOD budget overnight. That would be bad for our economy and all of us. What I am asking is how much do we NEED to spend on our military? Especially when we are debating cuts to Social Security, Medicare, Medicaid, food stamps, and unemployment insurance. These are the programs that help the economically displaced, the poor (including children), the elderly, and the sick.
We measure our countries greatness by GDP, yearly economic growth rates, and corporate profits. How about measuring greatness by how many Americans’ have access to health care, How many are taken care of in their old age, How many of our young are educated without debt shackles, and how few of our children go to bed hungry. Those are stats I’d love to excel at!
We need a national discussion about how much we should spend on weapons and weapons systems. How much should we be paying the Military Industrial Complex? Dwight D Eisenhower tried to warn us…and now we must decide. An out take from his speech below... (emphasis mine)
A vital element in keeping the peace is our military establishment. Our arms must be mighty, ready for instant action, so that no potential aggressor may be tempted to risk his own destruction...
This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence — economic, political, even spiritual — is felt in every city, every statehouse, and every office of the federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society. In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists, and will persist.
We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals so that security and liberty may prosper together.
~President Dwight D. Eisenhower, January 17, 1961
It’s time to take Social Security, Medicaid, and Medicare off the negotiating table. Put that huge bloated turkey of a Defense budget up there and let the trimming begin. Extend unemployment benefits and give us all an infrastructure stimulus. Please, fix my bridge; fix everyone’s bridge, pretty please.
Let’s educate Congress about the difference between Patriotism, and bullsh*t.
Then again what do I know, I’m just a Simple Serf.