Operational wartime spending is separate from the general Department of Defense (DOD) budget, and is approved by congress as supplementary spending. The Iraq War, alone, will cost 3-5 Trillion dollars. If you want to count veterans affairs as military spending that is another $120+ billion that is allocated under the Department of Veterans Affairs. Spending on our nation’s nuclear arsenal is also not considered military spending. The U.S. nuclear budget falls under the jurisdiction of the U.S. Department of Energy (DOE). According to the White House, the fiscal year 2011 department of defense base budget is $548.9 billion. There is already a request placed for $159 billion for FY 2011 to cover the current wars. There is also potential for a significant increase in these requests should new conflicts erupt, or fighting get worse. Already only seven months into 2010, and there is a pending request to congress for an additional $33 billion for overseas operations.
It is plain to see that the 4% number is a complete
http://www.cato.org/pub_display.php?pub_id=10209">smokescreen.
Wars cause recession and our two wars are no exception.
PhD economist Dean Baker points out that America's massive military spending on unnecessary and unpopular wars lowers economic growth and increases unemployment:
Defense spending means that the government is pulling away resources from the uses determined by the market and instead using them to buy weapons and supplies and to pay for soldiers and other military personnel. In standard economic models, defense spending is a direct drain on the economy, reducing efficiency, slowing growth and costing jobs.
A few years ago, the Center for Economic and Policy Research commissioned Global Insight, one of the leading economic modeling firms, to project the impact of a sustained increase in defense spending equal to 1.0 percentage point of GDP. This was roughly equal to the cost of the Iraq War.
Global Insight’s model projected that after 20 years the economy would be about 0.6 percentage points smaller as a result of the additional defense spending. Slower growth would imply a loss of almost 700,000 jobs compared to a situation in which defense spending had not been increased. Construction and manufacturing were especially big job losers in the projections, losing 210,000 and 90,000 jobs, respectively.
The scenario we asked Global Insight to model turned out to have vastly underestimated the increase in defense spending associated with current policy. In the most recent quarter, defense spending was equal to 5.6 percent of GDP. By comparison, before the September 11th attacks, the Congressional Budget Office projected that defense spending in 2009 would be equal to just 2.4 percent of GDP. Our post-September 11th build-up was equal to 3.2 percentage points of GDP compared to the pre-attack baseline. This means that the Global Insight projections of job loss are far too low...
The projected job loss from this increase in defense spending would be close to 2 million. In other words, the standard economic models that project job loss from efforts to stem global warming also project that the increase in defense spending since 2000 will cost the economy close to 2 million jobs in the long run.
The Political Economy Research Institute at the University of Massachusetts, Amherst has also
http://www.peri.umass.edu/fileadmin/pdf/published_study/spending_priorities_PERI.pdf">shown that non-military spending creates more jobs than military spending.
So we're running up our debt - which will eventually decrease economic growth - and creating many fewer jobs than if we spent the money on non-military purposes.
Wars are a net drain on employment.