War is costly. The Bush administration has been paying for military operations in Iraq and Afghanistan with “emergency supplemental” spending. Think of it as an “off balance sheet” transaction; it’s there, but it’s not in the annual budget and doesn’t go through the usual appropriations process. With supplementals, defense spending has grown to more than 700 billion dollars a year.
The “must pass” nature of supplemental spending means the bills get loaded them up with various other spending. For example, the package signed by the President in June doubled the GI benefits for troops and veterans, extended unemployment benefits, provided emergency flood relief for the Midwest and levee repairs in Louisiana. These supplemental bills also have been used to fund various weapons projects.
Analysts expect the Obama administration to cut the defense budget, in part by drawing down troops in Iraq and in part by cutting large scale weapons programs. Already the industry is fighting back, talking about the importance of defense for national and economic security. It’s likely to be a harder battle for the industry to win if the weapons programs have to go through the usual budget process.
Comments
i don't understand how such a whopping yearly expence is not in the annual budget. that's like me trying to balance my check book without accounting for my mortgage. what the heck is in the budget? i totally disagree with the nonsense of defence spending being off the balance sheet. this seems like just another way of saying borrowing against the future. "hrmhrmhrm...let's tac on a pay raise for ourselves".
everyone thinks their too important to the economy to lose subsidies. but if the money ain't there, well then too bad. that's reality folks. cold hard reality. we going to just keep digging a deeper and deeper hole and constantly defer it to the future?
you know, if i spend all my income and saved nothing, that would be good for the economy too. but no, it is not enough for a gov't funded
"investment" to provide jobs. it must also be something we really need. else, divert the funds where it really needed and new jobs can come from more worthy ventures. do we really need a f-## raptor fighter jet. what, all those others not competitive enough anymore? oh no, russia might gain air superiority! pht
this is just my simple minded, conventional wisdom, pov. those more savy with the ways of accounting and economics maybe could justify it.