Budget Deficit and Military Spending

Military spending is a gauge of military power. A republic’s financial commitment to military activities is determined by the strength of the competitor and it strives to achieve[1]. The economic strength of a country is the foundation for its military power by influencing the level of technological innovations, military organizational creativity and tactical approaches in military activities[2]. Economic strength and prosperity during peace as well as during war is an important requirement to build a strong military force[3]. The trend in military spending discloses the strength of a country for coercion[4]. Senior U.S.A. security representatives’ evaluation of the budget challenges in the country conclude that it is a risk to national safety[5].

Military Expenditure

Trends in military disbursements have amplified worldwide, but decreased in the US. Recently, the peak of military spending was noted in 2010 and it has decreased by 19.8% by 2014[6]. Despite USA’s world share of military expenses remaining high at 34%, annual reductions are occurring while other countries are increasing their disbursement. The spending in the USA military remains high, and it’s still comparable to when it was at its highest in the 1980s[7]. The increase in military expenditure for any country leads to the drain of national resources. High levels of spending are noticed when a country is directly threatened resulting in budget deficits[8]. With the level of USA budget austerity and the absence of attacks in the country, the continued expenditure in the military causes undue stress on the national budget[9].

Debt deficits can crowd out investment in the USA in the future or lead the country to be dependent on foreign largesse in sustaining adequate investment levels[10].As a result, more ownership of national assets will be taken up by non-Americans. The deficit makes the US vulnerable to a crisis that is contagious to the economy, such as war, recession, and flight of investors from the country. Projected interest rates are deemed to rise from 200 billion dollars to 800 billion dollars by 2020 raising the debt crisis higher[11].

The means to stabilize the budget are to cut spending, increase taxes, or a mix of the two approaches[12]. The current policies made by the government should address war costs rather than depending on past decisions[13]. Such tactics can facilitate the formulation of military budgets that make financial reductions due to predictable effects on overseas operations. Fifteen percent of the federal spending is on non-war defense and change of policies can manage gradual decrease[14]. After stabilization of the budget, the non-war defense expenditure can be allowed to grow again without adverse effects on the economy.

The military can significantly contribute to alleviating the budget deficit through the following approaches:

Tougher management            

Efforts have been made to increase savings through conscious leadership in the military. Various programs that were deemed unnecessary such as a further production of F-22 fighters and production of new bombers have been canceled by Secretary Gates…


[1] (Bouhan and Swartz 2011)

[2] (Murdock and Crotty 2014)

[3] (O’Hanlon 2010)

[4] (Bouhan and Swartz 2011).

[5] Ibid

[6] Ibid

[7] (Perlo-freeman, et al. 2005)

[8] (Eaglen 2013)

[9] (Bouhan and Swartz 2011)

[10] Ibid

[11] (O’Hanlon 2010)

[12] (International Monetary Fund 2013)

[13] (Harrison 2013)

[14] (Perlo-freeman, et al. 2005)

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