More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Andy Stern

Andy Stern

Posted: February 14, 2011 10:19 AM

On this Valentine's Day, leaks from "sources" provide some early insight into the details of the president's budget submission, while the press also reports on the specifics of the announced $100 billion in budget changes being offered by House Republicans after the Tea Party rebellion.

And as we ponder these cuts in programs; for teachers in our classrooms, education for preschoolers, law enforcement in our communities, fuel assistance for the needy, and the other "gifts" in store for the American people, it strikes me there is a Valentine's Day message this year of Ronald Reagan's 100th birthday we could receive from Russia with love.

President Reagan is often credited with the defining plan to end communist rule in the Soviet Union.

Ronald Hilton, a Stanford University professor, and founder of the World Association of International Studies (WAIS) described the Reagan strategy. "A central instrument for putting pressure on the Soviet Union was Reagan's massive defense build-up, which raised defense spending from $134 billion in 1980 to $253 billion in 1989. This raised American defense spending to 7 percent of GDP, dramatically increasing the federal deficit. Yet in its efforts to keep up with the American defense build-up, the Soviet Union was compelled in the first half of the 1980s to raise the share of its defense spending from 22 percent to 27 percent of GDP, while it froze the production of civilian goods at 1980 levels."

Russia's competition to succeed militarily at the expense of its domestic economy is cited as a key factor in its demise. In the end it was not a lack of military prowess, but rather economic weakness, that accelerated the collapse of the Soviet Union.

Now nearly 20 years later that lesson is seemingly ignored in our economic thinking represented in this year's budget proposals.

We have chosen to increase America's military budget, in inflation adjusted dollars, (excluding the wars in Afghanistan and Iraq) from $407 million 2001 to $553 in 2011; a 1 trillion dollar increase in spending over the decade.

With both President Obama and the House majority advocating Defense Department spending cuts of less than $75 billion over 5 years, one wonders what will be the long term danger for ignoring the necessary action to meet the challenge of Admiral Mullen, the Chair of the Joint Chief of Staff who said, "The most significant threat to our national security is our debt."

President Obama's focus on the need for investment and competitiveness outlined in his State of the Union "Winning the Future" address cannot be significantly accomplished with either the current or his proposed level of defense spending.

Are we having our own "Russian moment"?

George Will reminded us in his column yesterday, "The United States spends almost as much on military capabilities as the rest of the world spends, and at least six times more than the second-biggest spending nation (China)."

And, ominously, in our country's case, contrary to Russia's, our banker is our country's biggest competitor, China, now holding nearly 1 trillion dollars of Treasury securities and other government debt.

We should learn a lesson from the Japan-China conflict in September over the Diaoyu (Senkaku) Islands, and China's resulting economic retaliation of withholding the export of needed rare earth metals/minerals and threatening other economic actions for diplomatic aims; that you never want a banker who is an ideologue rather than a fiduciary.

Our budget for defense spending in 2000, the last time we balanced a budget, had a different proportional role. The defense to non-defense discretionary ratio was approximately 48% defense v. 52% non-defense discretionary spending, but over the last decade it has grown to a ratio of 54% defense v. 46% non-defense discretionary spending today.

The Sustainable Defense Task Force sometimes called the Frank-Paul Commission, consisting of policy and business leaders covering the whole political spectrum, recommended cuts in Defense spending of $960 billion from 2011-20.

Senator Tom Coburn, a responsible conservative, has called for a spending freeze until the Defense Department has auditable financial statements.

The Simpson-Bowles National Commission on Fiscal Responsibility and Reform proposed nearly $200 billion more in cuts in defense spending by 2015 than the President's plan.

Providing for the defense of the nation has, and will always be, the responsibility of our national government, but that responsibility cannot exist in a vacuum or without constraints. Spending as much for defense as the rest of the world combined, even while winding down our adventures in Afghanistan and Iraq, I for one, do not believe is either appropriate, sustainable or the right strategy for America.

Military spending cannot be the new hidden version of stimulus, the core of our export strategy nor America's economic engine for growth and competitiveness in the 21st century. More importantly, we need to reallocate the money spent on defense to meet human needs and restore fiscal balance in our own country.

As Kori Schake, Hoover Institute Fellow and advisor to McCain-Palin, said, "Conservatives need to hark back to our Eisenhower heritage and develop a defense leadership that understands that military power is fundamentally premised on the solvency of the American government and the vibrancy of the American economy."

And as John Podesta and Michael Ettinger of the Center for American Progress reminded us, "An overall defense strategy that is fiscally unsustainable will fail every bit as much as a strategy that short changes the military."

On this Valentine's Day we should express our love for America by remembering that the best Valentine gift we can give each other is a country that is safe from threats from without and within. Let's receive the Valentine's Day message from Russia, with love, and act to ensure a nation where we have students with enough teachers, opportunities for children to learn from birth, health care for those who suffer, seniors with the ability to retire with dignity and security, jobs where hard work pays, and an America where the dreams of our children still come true.

That is my Valentine's wish.

Happy Valentine's Day! From America with love!

 

Follow Andy Stern on Twitter: www.twitter.com/AndyStern_DC

 
 
  • Comments
  • 10
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
02:18 AM on 02/15/2011
One thing we could do to help the fiscal situation out would be to outlaw government employees from forming or joining unions. They are bad for budgets. People who fasten lug bolts on new cars making 80K per year is why our car manufacturers went down the tubes. Andy wants TSA gropers to make big money so they can be taught to ignore the likely terrorists at the airport and focus on good looking women.
11:48 AM on 02/15/2011
union workers have important jobs to do. If you don't like then you can build your own roads, teach your own kids, police your own city, fight your own fires, and heal your own wounds. Unions didn't cause the economic crisis. People who screwed ignorant citizens into spending outside of their means and companies making money off of unsustainable greed.
04:54 PM on 02/14/2011
Mr Stern should know all about fiscal sustainability. He was the author of numerous labor contracts which bankrupted the host company with unsustainable salary and benefit demands. Then he had to run to the government to get those companies bailed out. hahaha. what a loser.
photo
HUFFPOST SUPER USER
Edward Watters
If voting changed anything, they'd make it illegal
04:41 PM on 02/14/2011
So, Andy Stern is writing about fiscal sustainability as he enjoys his $227,000/yr pension extracted from the rank and file of SEIU. I use the traditional labor terminology to refer to the workers out of respect for the workers - not to imply that SEIU is a union. It has a few union attributes, it collects dues - a lot of dues as Andy's pension attests, but it is way to cozy with management to meet the criteria of a functioning union.

With all that experience cozying up with bosses, Andy's entered the lucrative field of pharmaceuticals so there's no need to guess why he's smiling in that picture.
04:39 PM on 02/14/2011
With all due respect Mr. Stern, as a forensic accountant your writing this article is tantamount to my writing an article on botany. Thanks for your Valentine’s Day salutations, I know of no other true American that does not comport with your last sentence. Mr. Stern now is the time for Unions to fall back and regroup which we all are vertically as the next couple of years will be nothing short of sobering budget adjustments and cuts that will be realized from the Oval Office on down to Ma and Pa and their cat Muffy. Take this time to streamline Union affairs for America going forward and let the President handle our Nations budget. To think that no agency, business or union, private or public will carry on as usual is folly. Unfortunately Unions just as Big Business aren't in the top ten favorite categories of the American people right now. Quite the contraire'.

Respectfully…….Tina
04:43 PM on 02/14/2011
Exactly. Look how well Mr Stern handled the SEIUs resources. hahahahaha. Had to run crying to the government for a bailout.
photo
HUFFPOST SUPER USER
muliolis
11:42 AM on 02/14/2011
Another key to the collapse of Soviet Russia was the fact that it was a COMMUNIST COUNTRY! Of course they will spent too much of their resources on things of relative unimportance, especially the military.

I do not presume to know how much we should be spending on defense, sice I have no military experience. I am sure we are using our military in ways we should not, maybe leaving it unprepared in other ways. (The old saw about always preparing for the last war) But I do support a very strong military. I think it was Heinlein who said that the most expensive thing a nation can have is a second-best military establishment.
HUFFPOST SUPER USER
Anabelle Lee
11:33 AM on 02/14/2011
Yes, the US can slash their entire defense budget soon by 20% or wait and have it slashed by a crashed economy by 75%.

China hopes you wait.
10:59 AM on 02/14/2011
As a form soldier, I have to agree, the amount of money spend on defense vs what we actually need to spend is ridiculous. Please cut the spending people! I don't want my kids growing up in a third world country
This user has chosen to opt out of the Badges program
photo
10:45 AM on 02/14/2011
The first thing to do is stop calling it a defense budget and call it what it really is, a war budget.