Deficit & Debt: Goodbye American Power

The United States has an interesting role in global markets. Since World War II, the US has entangled itself in superfluous alliances and Keynesian markets, engaging in the same illusory markets as its European counterparts. As Jihan discussed, we have recently learned that President Barack Obama’s proposed federal budget may put the United States’ economic legitimacy in even greater risk than it has been before for several reasons. Primary, our deficit is running off “nearly 11 percent of the country’s entire economic output.” But as the NY Times has stated, most deficits are usually brought down during peacetime. However, with the way the United States has been handling foreign policy as of recent, any form of “peacetime” seems like an ocean away from any “hope.”

From NYT - Carrying the Budget

What makes military spending today ever more costly is that for every single American soldier in our military, he or she requires three other personnel for support. Considering that America spends 48% of total global spending on just the military and 63% of its own Federal Discretionary Budget on its military, an actual balance of the budget is nowhere in sight. And rather than Mr. Obama removing unnecessary Cold War departments or removing unnecessary government programs to inevitably lower taxes on the middle class, he proposed no decrease in military spending and instead suggested to cut spending on certain programs while transferring those funds to other more useless programs. And with his goal to essentially “ensure higher education” to more students nationwide, he will only be depreciating the value of a college degree. This spending, tied in with the debt we owe to China and several other countries, will only diminish American power in the international arena even further than the previous administration has. 

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