U.S. Defense Spending

Probing beneath the stable surface of the political and economic environment for defense spending, this book reveals pressures for change and conflict in Congress, the news media, and the defense industry. It shows how fewer Congressional districts are getting larger shares of the Pentagon pie and questions whether new weapons help preserve the defense industry.

During World War II, General Dwight D. Eisenhower became convinced that the era of separate land, sea, and air operations was over and that future military operations would involve all three elements acting in concert. He foresaw that, once peace had been restored, the waste and duplication of effort which characterized America's military operations during the war would not be tolerated by an economy-minded Congress. A fiscal conservative, Eisenhower saw national security as dependent upon maintaining a healthy economy and a strong military. His goal, therefore, was the achievement of an efficient, properly balanced military establishment within the context of a healthy economy through the unification of the services into a single Cabinet level department.

One of the most difficult issues facing the United States government is how to maintain an adequate defense in a period of budget stringency. The Iraqi invasion of Kuwait made it clear that the United States must be able to respond to rapid changes in the international scene. On the other hand, with the extraordinary events in Eastern Europe, reductions in US-Soviet tensions, and a worsening budget deficit at home, it is equally obvious that the military budget will be squeezed substantially in the early 1990s. The issue of defense spending is at the forefront of the US political agenda, and with it a host of fundamental questions: How much military strength does the US really need in a post-Cold War world? How can economic policy handle large cuts in defense? And what is to be done with the people and companies now working on defense projects? In Small Wars, Big Defense, Murray Weidenbaum, the former Chairman of the President's Council of Economic Advisors, draws on years of government and industrial experience to offer a provocative look at the troubled US military complex as it confronts a radically changing world. After a careful assessment of present and likely future threats to US security interests, he takes a hard look at the the American military and defense industry, demonstrating how cycles of "feast and famine" in military budgeting have been so wasteful. He calls for a fundamental reform of the spending process, including an overhaul of the procurement system, more sensible ways of paying military personnel, and reductions in regulation of the defense contractors. At the same time, he offers concrete policies on how the American economy can best adjust to large defense cutbacks and move toward a more civilian-oriented economy. Finally, he presents ideas for getting the most out of lower defense budgets, while maintaining the capability to reverse course if necessary. A timely book on the most pressing cluster of political and economic issues of our time, Small Wars, Big Defense will be required reading for planners, politicians, military personnel, and anyone with an interest in the direction of this country's future.

This is a timely collection of essays utilizing the political economy approach to military spending, primarily by the United States. The articles deal specifically with the relationships between defense spending and: (a) political-business cycles, public opinion and the US-Soviet relationship; (b) military action - i.e. war; (c) economic performance - the trade deficit, guns versus butter issues and fiscal policy.

Discusses the complexities of, and recommends a methodology for, measuring changes in service cost sincurred by the military.