Publications

As the economy struggles to emerge from the deepest recession since the Great Depression, the federal government faces a dire fiscal situation. The budget deficit is projected to reach as high as $1.6 trillion in FY 2010 due in no small part to increased spending on fiscal stimulus programs and a sharp reduction in tax revenues due to the recession. But underlying the current fiscal situation is a structural deficit that the economic downturn only exacerbated. A telling indicator of this is that one of the fastest-growing items in the budget is net interest on the national debt. Given current projections, before this decade’s end the federal government will spend more on net interest payments than on national defense for the first time in modern history. And as Congress and the administration focus more attention on reducing the deficit,all areas of the budget, including defense, will come under increasing pressure.

The Obama Administration’s FY 2011 budget request includes a total of $712 billion for the Department of Defense (DoD). The base budget for the Department includes $549 billion in discretionary funding and $4 billion in mandatory funding. An additional $159 billion is requested for the wars in Afghanistan and Iraq. The budget also requests $19 billion for defense-related atomic energy programs, $8 billion for defense-related activities in other agencies, and $122 billion for veterans. Together these expenses total $861 billion, or 22 percent of the total federal budget.

The United States is struggling to emerge from the greatest peacetime economic downturn since the Great Depression. Known as the Great Recession, the country’s current fiscal difficulties seem unlikely to abate any time soon. If there is a consensus regarding the country’s recovery, it is that it will be both gradual and protracted.1 Some economists, eyeing the government’s rapidly growing debt and expanding obligations, have expressed concerns over the country’s ability to sustain healthy growth levels over the longer term. The implications for US security are potentially profound. Washington has long relied on its ability to bring to bear far greater resources than any other country against any threat to the nation’s security. If current trends play out, this advantage is almost certain to diminish, perhaps dramatically, in the coming years. Long accustomed to pursuing a “rich man’s” approach to strategy, the United States will find itself increasingly challenged to take a “smart man’s” approach—one for which it seems ill-prepared.

As the economy begins to emerge from the deepest recession since the Great Depression, the federal government faces a dire fiscal situation. In fiscal year (FY) 2009, the budget deficit rose to a record high of $1.4 trillion, and it is forecasted to reach as high as $1.6 trillion in FY 2010. These record deficits are due in no small part to increased spending on fiscal stimulus programs and a sharp reduction in tax revenues due to the recession. But underlying the current fiscal situation is a structural deficit that the economic downturn has only exacerbated. A telling indicator of this is that one of the fastest growing items in the budget is net interest on the national debt. According to OMB projections, in FY 2018 the federal government will begin spending more on net interest payments than on national defense for the first time in modern history.

Emerging operational challenges in the Western Pacific require development of a new, integrated concept of operations for U.S. air and sea forces akin to the AirLand Battle of the 1980s

On April 6, the Department of Defense released its Nuclear Posture Review (NPR), which sets forth the Obama Administration’s guidance on American nuclear policy, force structure, and doctrine. The report has been highly anticipated, due in large part to President Obama’s public commitment to the goal of a nuclear weapons-free world.