America has embarked on cost-cutting strategic reviews before. In the wake of the Korean War, the Eisenhower administration took what it called “the new look” at defense.
Eisenhower “made a shift in strategy from the Truman era, to focus more heavily on nuclear deterrence, and the threat of massive retaliation to deter conflict,” says Mr. Harrison, senior fellow for budget studies at the Center for Strategic and Budgetary Assessments. “If you look at the budgets between [fiscal year] 1955 to 1958, you see the Air Force and Navy procurement nearly double, and the Army budget went down to almost zero.”
Why? “The Army was struggling to catch up in a nuclear world,” Harrison explains. “And the budget reflected that shift in strategy.”
Now the Obama administration must go through a similar process. “Before you get to the ‘cut’ list, you have to say ‘What are the capabilities we’re going to need in the future? What are our highest priorities? And what are the low priorities that we’re going to do without?’ ” Harrison says. “And that’s where you should start.”
In launching the Pentagon’s review process this week, Gates issued what some perceived as an ominous warning: “If the political leadership of this country decides that it must reduce the investment in defense by hundreds of billions of dollars, then I don’t think we can afford to have anything that’s off the table.”