The US government is in a financial bind — that’s not exactly news. What is new, however, is that the military may actually have to take cuts, not just smaller increases in the annual budget:
On one side of the argument are fiscal hawks like Rand Paul, newly elected senator from Kentucky, who fear that a national debt heading towards 100% of GDP by the end of the decade is in itself a menace to the nation and defence must take its share of the pain. The sheer size of America’s defence budget puts it in the crosshairs. At around $700 billion a year including war expenditures, it as big as those of the world’s next 20 highest military spenders combined. Last year American defence spending exceeded the average spent during the cold-war years by 50% (adjusted for inflation), while in the past 10 years it has grown by 67% in real terms.
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Mr Gates, a canny operator whom Barack Obama retained after he took over from George Bush, began to sniff which way the wind was likely to turn in 2008. He calculated that if he took the initiative, he might stave off deeper and more unwelcome cuts. So he curbed or cancelled more than 30 weapons systems including the army’s Future Combat System, the F-22 Stealth fighter, two missile defence systems and the Zumwalt-class destroyer. Last year he went further, proposing the closure of the Joint Forces Command in Virginia and a 10% reduction in the budget for contract workers for each of the next three years. He asked the armed services to find at least $100 billion worth of “efficiency savings” over the next five years, which he promised to reinvest in other programmes.
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Buck McKeon, the Republican who now leads the House Armed Services Committee, has responded with predictable fury to the Gates plan, saying it was “a dramatic shift for a nation at war and a dangerous signal from the commander-in-chief”. Mr Gates can take some comfort from the fact there has been at least as much “incoming” from critics who say he has not gone nearly far enough. They point out that what is being planned is not so much a cut as a small reduction on what the Pentagon had been planning to spend over the next four to five years. The budget will still creep up in real terms until it flattens off in 2015. Given his intention to retire from office later this year, Mr Gates may not have the stomach for attempting anything more radical on his watch.
