Durable Goods: More Guns Than Butter
Courtesy of Adam Sharp of Bearish News
Haver Analytics gives us this chart/data:
Military should be the first in line for budget slashing, but the opposite is taking place. While “defense” spending does boost GDP, and preserve (politically important) jobs, it’s still a huge drag on the real economy.
America’s military is bloated, and much like the FIRE sector, it needs shrinking. Both are incredibly inefficient ways to grow/stimulate an economy. In their current state, both are a drain on American resources. And with their armies of lobbyists, this isn’t likely to change soon.
America faces a funding crisis like we have never seen. The U.S. remains the world’s lone superpower. That would still be the case if we cut military spending 30%. Reducing the budget and shifting those jobs to more productive areas, like energy and manufacturing, would have immensely positive effects on the economy.
The question is – do our political leaders have the courage to cut spending before things get out of control? Based on what we’ve seen so far – the answer is clearly no.
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See also: Clinton presses China over Iran nuke sanctions, Mike "Mish" Shedlock
The country most responsible for the "Arms Race" is the United States of America. US troops stationed all over the world are a destabilizing force….
Earlier today I commented on a huge protest in Japan over US bases. Please see Thousands in Tokyo Protest Against US Troops in Japan for details.
The end of US global dictatorship is nigh. That is a good thing given that we cannot afford the cost.
