Military Expansion, Economic Decline: The Impact of Military Spending on U.S. Economic Performance

By Robert W. Degrasse | Go to book overview

Appendix C
Total Military Spending Budget*

Analysts have long recognized that the official Defense Department budget excludes the cost of many military-related activities conducted by the federal government. The purpose of this appendix is to present a comprehensive listing of federally funded military activities and to create a more comprehensive measure of military spending for the years 1940 to 1988.

Contrary to recent statements by administration officials, the military is the single most important recipient of general government revenues. Official estimates of military spending are low because the Office of Management and Budget's (OMB) definition of defense only includes those programs that directly support the U.S. armed forces. Actually, a substantial portion of every federal budget since World War II has financed the continuing cost of prior military activities through debt interest and veterans' benefits, while several other military-related programs have been funded through civilian budget categories.

Furthermore, by adding self-funding trust fund accounts like Social Security to the federal budget in 1969, the government enlarged the budget pie, thereby lessening the military's apparent share of both the federal budget and the budget deficit. Measuring military costs as a percentage of federal funds, which are the monies available to all non- trust federal programs, provides a clearer picture of the government's actual spending priorities.

By assessing the total cost of past and present military activities for each year since 1940, and by measuring military spending as a percentage of federal funds, we found that military outlays represented 48.6 percent of available budget dollars in 1981. This percentage is expected to rise to 59.2 percent in 1986.

____________________
*
Developed by Paul Murphy and David Gold, with assistance from Robert DeGrasse Jr.

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Military Expansion, Economic Decline: The Impact of Military Spending on U.S. Economic Performance
Table of contents

Table of contents

  • Title Page iii
  • Table of Contents v
  • Acknowledgments vi
  • Foreword vii
  • Introduction 1
  • Notes 5
  • I - The Military Budgets, The Economy and Jobs 6
  • Conclusion 15
  • II - Military Spending: Stimulant or Impediment? 35
  • Conclusion 53
  • III - The Technological Impact Of Military Spending 77
  • Notes 97
  • IV - The Costs Of The Current Buildup 109
  • Conclusion 125
  • Summary Of Findings 153
  • Conclusion 160
  • Appendix A - State by State Breakdown Of Military Spending 161
  • Notes 162
  • Appendix B - Cross-National Analysis of The Economic Impact Of Military Spending 176
  • Notes 183
  • Appendix C - Total Military Spending Budget 222
  • Notes 246
  • About the Author 248
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