The Trillion-Dollar Defense Budget Is Already Here

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http://www.independent.org/newsroom/article.asp?id=1941

The Trillion-Dollar Defense Budget Is Already Here
March 15, 2007
Robert Higgs

When President George W. Bush presented his budget proposals recently for the fiscal year 2008, he emphasized that the nation’s security is his highest priority, and he backed up that declaration by proposing that the Pentagon’s outlays be increased by more than 6 percent beyond its estimated outlays for fiscal 2007, to a total of more than $583 billion. Although many Americans regard this enormous sum as excessive, hardly anyone appreciates that the total amount of all defense-related spending greatly exceeds the amount budgeted for the Department of Defense. Indeed, it is roughly almost twice as large.

In the fiscal year 2006, which ended last September, the Pentagon spent $499.4 billion. Lodged elsewhere in the budget, however, other lines identify funding that serves defense purposes just as surely as—sometimes even more surely than—the money allocated to the Department of Defense. On occasion, commentators take note of some of these additional defense-related budget items, such as the Department of Energy’s nuclear-weapons programs, but many such items, including some extremely large ones, remain generally unrecognized.

Since the creation of the Department of Homeland Security, many observers probably would agree that its budget ought to be included in any complete accounting of defense costs. After all, the homeland is what most of us want the government to defend in the first place.

Other agencies also spend money in pursuit of homeland security. The Justice Department, for example, includes the Federal Bureau of Investigation, which devotes substantial resources to an anti-terrorist program. The Department of the Treasury informs us that it has “worked closely with the Departments of State and Justice and the intelligence community to disrupt targets related to al Qaeda, Hizballah, Jemaah Islamiyah, as well as to disrupt state sponsorship of terror.”

Much, if not all, of the budget for the Department of State and for international assistance programs ought to be classified as defense-related, too. In this case, the money serves to buy off potential enemies and to reward friendly governments who assist U.S. efforts to abate perceived threats. About $4.5 billion of annual U.S. foreign aid currently takes the form of “foreign military financing,” and even funds placed under the rubric of economic development may serve defense-related purposes indirectly. Money is fungible, and the receipt of foreign assistance for economic-development projects allows allied governments to divert other funds to police, intelligence, and military purposes.

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