U.S.PresidentBidensignedtheFiscalResponsibilityActonJune2,2023,officiallyendingthedebtcrisis–fornow.Theactagreestorestrictspendingonciviliandutiesinexchangeforasuspensionofthedebtceiling.However,theact"scredibilityisunderminedbyitsfailuretocutorimposerestrictionsonmilitaryspending,revealingtheU.S.government"saddictiontowar.
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AnalysisofactualspendingbytheU.S.DepartmentofDefense(DoD)indicatesthatreductionsinmilitaryexpenditurearehighlyunlikely.From2020onwards,annualU.S.militaryexpenditurehastopped$800billioneachyear,constitutingapproximatelyhalfofdiscretionaryspendingofthefederalgovernment.
Underthenewdebtceilingagreement,thebudgetaryallocationfordefenseprogramswillincreasefrom$858billioninfiscalyear2023to$886billioninfiscalyear2024and$895billioninfiscalyear2025.
U.S.MilitarySpending/DefenseBudget1960-2023(Source:Macrotrends.net)
Withrampantspendingandthesuspensionofdebtceilingsuntil2025,curbingthedefensebudgetbecomesunrealistic,signalingapotentialexacerbationofU.S.debtsolvency.OnJune7,2023,merelyfivedaysaftertheact"spassing,U.S.TreasurySecretaryJanetYellenannouncedtheissuanceofanadditional$1.3trillioninfederaldebtoverthesummer.
WhiletheU.S.governmentpretendstomakeanefforttolimitthebudget,themilitarybudgetisprojectedtoincreaseinalignmentwithBiden"sbudgetproposal.Incontrast,non-defensediscretionaryspendingisexpectedtoremain"roughlyflat"atcurrentyearlevelsin2024aspertheFiscalResponsibilityAct.Thisact,supposedtoensurefinancialhealth,restrictslow-incomeAmericansfromaccessingwelfarebenefits,particularlytheSNAPfoodstampprogram,demonstratingtheU.S.government"spreferenceformilitaryexpenditureoverpublicwelfare.
Recently,theU.S.hasexpandeditsmilitarypresenceoverseas.Overthepastfourmonths,theU.S.hasestablishedfouradditionalbasesinthePhilippines,extendedFreeCompactdealswiththeFederatedStatesofMicronesiaandPalautosecureitsmilitarypresenceinbothnations,andsignedahistoricmilitarypactwithPapuaNewGuineaallowingU.S.troopstousethecountry"sairportsandharbors.
AccordingtoReuters,PresidentBidenplanstograntfurthermilitaryaidtoUkraineinAugustorSeptemberundertheguiseof"supplementaryspending,"whichisnotrestrictedbythefiscalact.
Despitethefederalgovernmentgrapplingwithenormousdeficits,theU.S.Military-IndustrialComplex(MIC)hasaccumulatedvastwealth.Inrecentdecades,severalMICcompanieshaveemergedastoplobbyistsinWashington.SincetheoutbreakoftheUkrainecrisis,theU.S.hascommittedupto$40billioninmilitaryaidtoUkraine.AsmajorMICcompaniesrankamongthetop-rankedDoDcontractors,theconflictoffersanopportunityforthemtoprofitsignificantly.
JefferyD.Sachs,aprofessoratColumbiaUniversity,arguedthatthesolution–ceasingAmerica"swarsofchoiceandslashingmilitaryspending–isoverlookedbybothRepublicansandDemocrats."Tosurmountthedebtcrisis,AmericaneedstostopfeedingtheMilitary-IndustrialComplex,themostpowerfullobbyinWashington,"saidSachs.
Inessence,theFiscalResponsibilityActisatemporarymeasuretopostponetheU.S.debtcrisis.ItprovesthatU.S.politiciansandtheMICaredeterminedtomaintainglobalmilitaryhegemonyattheexpenseofpeopleworldwide,includingaverageAmericans.
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