"Why a Cold War Budget Without a Cold War?"
The Cold War is Over (Isn't It?) March 10, 1999
Looking for Waste in Government?
Start With the Pentagon March 10, 1999
Business group urges cut in defense spending
Favors pouring more resources into education
WASHINGTON (CNNfn) - If a group of U.S. businessmen has its way, the government would
slash money for defense spending and launch an offensive aimed at educating Americans
for a newly defined workplace.
The group, Business Leaders for New Priorities, argues that rather than boost the
Pentagon's annual budget to $276 billion next year--$11 billion more than the
department requested--Congress should slice defense spending in favor of education
spending. Failuure to do so could turn America into a second-rate society, it warns.
"It's a question of priorities," Ted Williams, president and chief executive of Bell
Industries Inc. in Los Angeles and founder of the business group, said during an
appearance on CNNfn Thursday. "What we're talking about is where we spend our money.
In this particular situation, when you're giving the Pentagon more money than they are
asking for, I think it leaves some questions open." Of course, convincing politicians
to cut spending during an election year can be about as easy as pulling teeth from a
hungry lion.
But the group, representing more than 35 nationally-recognized executives, plans to
lobby Congress, the White House and voters, urging them to reassess priorities and
convince them the nation needs to change in order to compete with global business.
Williams said he does not think the nation can afford to maintain current levels of
defense spending and also boost support for education. There simply is not enough
money for both. He argues it is no longer necessary for the U.S. to spend as much as
it does on defense, an amount equal to 40 percent of the world's defense spending.
While conceding that the U.S. needs a strong military, he said providing the average
citizen with a solid, inexpensive education outweighs stationing 100,000 troops
overseas. But Williams must contend with others who stress the nation cannot risk
lowering its guard, particularly at a time when former enemies in Eastern Europe are
still undergoing a volatile transition.
That's not enough to convince Williams.
"Our true future depends on the talent we have in this country," he said. "We need to
look at (defense spending) and say, 'What are we afraid of? Who is our enemy? And what
is national security?' We need to look at what's good for the average American. The
quality of education, security, the safety of the streets: those are important."
Dr. Lawrence Korb, the former Assistant Secretary of Defense under Ronald Reagan, has
outlined an alternative Pentagon budget that would reduce spending by more than 17%
per year ($48 billion). Dr. Korb's study was sponsored by Business Leaders for
Sensible Priorities (BLSP), a coalition of business people and military officials who
are currently advocating a 15% reduction in the Pentagon budget. They believe this
money can be reinvested in programs that build American communities, such as school
modernization, class-size reductions, healthcare and other local and state programs.
Dr. Korb calls the present Clinton Administration plan "A Cold War Budget without a
Cold War" and argues for restructured spending that strengthens the U.S. military in a
manner reflective of the drastically changed world order.
INVESTMENT
(Charts here at website - CB)
Dr. Korb's $75 billion annual modernization proposal (20% less than the present $94
billion investment budget) would replace aging equipment and increase our
technological edge. Dr. Korb's plan would actually modernize U.S. forces "more rapidly
at a lower cost" than the current investment strategy. The Pentagon could achieve this
by buying less expensive weapons that would still be the most powerful in any battle,
rather than building the next generation of unproven weapons at three times the price.
"Rushing new generations of weapons systems into production," Dr. Korb reports, "is an
antiquated Cold War practice that continues to cost taxpayers billions." A breakdown
of Dr. Korb's proposed investment in conventional programs is contrasted to present
investment spending in the graph below:
NUCLEAR CAPABILITY
The Korb report calls the $30 billion spent annually on strategic nuclear forces a
remnant of the former U.S./Soviet practice of mutual assured destruction. Dr. Korb
urges the U.S. cut the number of strategic nuclear weapons from its present level of
7, 500 to a number no greater than 1,000, a quantity large enough to destroy any
possible targets but small enough to be maintained at $15 billion per year (half the
present rate).
READINESS
(Chart here at website - CB)
Dr. Korb details a readiness package costing no more than $145 billion per year, $21
billion less than present spending ($166 billion). Dr. Korb's plan would maintain
forces capable of winning a major theater war and conduct a significant peacekeeping
mission, while maintaining a presence in the other key areas around the globe. Dr.
Korb finds that the Pentagon currently overspends in force deployment. He maintains,
for example, that stationing 100,000 U.S. troops in Europe is excessive and that
50,000 troops would constitute an effective presence in Europe (which can afford to do
more to protect its own interests).
CONCLUSION
Dr. Korb's report stresses the importance of making a Pentagon budget responsive to
the reality of the post Cold War world. No longer should the U.S. Government overspend
to ensure security or compete in an arms race with the Soviet Union. As the only
remaining superpower, it is time for us to adjust spending to reflect that place of
privilege and responsibility. Dr. Korb's realistic budget proposals set an important
standard for fiscal responsibility. Pentagon officials were immune to financial
constraints during the Cold War era, and the recent reviews they have conducted have
been, Dr. Korb tells us, "nothing more than a rationalization for the existing force
structure." Business Leaders believes that it is now time for the Pentagon to follow
Dr. Korb's lead and become accountable for spending taxpayers' assets.
BUSINESS LEADERS
FOR SENSIBLE PRIORITIES
130 William Street, Suite 700
New York, NY 10038
Tel: (212) 964-1109
Fax: (212) 571-3332
e-mail: [EMAIL PROTECTED]
www.businessleaders.org
Copyright © 1999
Business Leaders for Sensible Priorities, All rights reserved.
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