Civilian Personnel: The Missing Piece in the Pentagon’s Budget Puzzle
While most news stories have accurately characterized the Obama administration’s proposed military spending cuts as “modest,” the Pentagon is planning significant reductions in the number of active-duty troops in the Army and Marine Corps. Both forces will be larger than they were in 2001, but the active-duty Army will fall from a post-9/11 high of 570,000 in 2010 to 490,000. The Marine Corps will go from 202,000 to 182,000.
The DoD should likewise reduce civilian personnel.
The reason the Pentagon’s plan places so much emphasis on personnel is stated clearly in the document (pdf):
Military personnel costs have doubled since 2001, or about 40% above inflation, while the number of full-time military personnel, including activated reserves, increased by only 8% during the same time period.
Ben Friedman and I have argued for an even smaller Army and Marine Corps, on the understanding that we should not permanently station U.S. troops in Europe and Asia. Such forward deployments are not essential to U.S. security and might ultimately undermine global security by encouraging other countries to defer spending for their own defense.
But the current proposal is clearly a step in the right direction, and it reflects the fact that Washington—and the American people—are not anxious to repeat the bitter experiences of the past decade. The costs of regime change followed by aggressive counterinsurgency are almost never outweighed by the benefits. We don’t have to build nations in order to destroy terrorists. The Army and Marine Corps grew to fight these types of wars, and they will now shrink back to nearly pre-war levels.
Other savings are possible, but not likely to be achieved in the near future. The president will ask Congress to authorize use of the Base Realignment and Closure (BRAC) process for changes in physical infrastructure. However, some members of Congress are already linking arms to prevent another round of base closings. Still, another BRAC (if it is ever convened) won’t generate significant savings in the next five years, and perhaps not in the next 10. Additionally, the proposal calls for Congress to empower “a commission with BRAC-like authority” to review the full range of costs associated with the military retirement system, with the added stipulation that any “reforms should only affect future recruits.” Thus, any potential savings will not materialize in the near term.
The New Pentagon Budget: Better, but Not Great
The changes announced in the Pentagon’s new budget guidance are, from my perspective, mostly good news, but woefully insufficient. They show how even limited austerity encourages prioritization among weapons systems that suddenly have to compete. A few more budgets like this and we’ll be getting somewhere.
The White House has not yet released the actual budget, but the Pentagon yesterday released a new document that explains the minor cuts in line for its slice. The document, unlike all the other defense strategy and guidance documents that have come out in recent years, sticks to plain English, avoids geopolitical gobbledygook, and tells you the budgetary impacts of its assertions. For that alone the Pentagon deserves some credit.
The document claims to be a guide to savings of $487 billion over 10 years. But you only get that figure by counting against past White House budget requests and their associated spending trajectory. We are saving just $6 billion from fiscal year 2012 to 2013, or 3.2% adjusted for inflation. If we leave out falling war costs, we have essentially frozen defense spending for two fiscal years (2011 and 2012), letting it grow at about inflation and then slightly slower, respectively. The Pentagon expects defense spending to grow at the rate of inflation or faster starting in fiscal year 2014, although their estimates of inflation are self-serving.
The new spending trajectory would cut about 8 percent from the base budget by the end of the decade. That’s from a budget that doubled in real terms from 1998 until 2012. And some of those savings are not really saved; they have simply migrated into the war budget. Keep in mind also that those savings are just a plan, one that is unlikely to last, particularly as presidents and Congresses change.
The biggest change in this budget is the beginning in a reduction of ground forces. The document says we will cut 80,000 troops from the Army and 20,000 from the Marines. The rationale is solid: we are probably not going to be committing large numbers of troops to another occupation of a populous country in revolt any time soon. Yet the cut leaves both forces with more personnel than they had prior to the expansion of ground forces that began in 2008. A real strategic shift away from occupational warfare would entail a bigger drawdown of Army and Marine personnel.
Obama’s State of the Union Signals Grand Strategy Status Quo
It was clever, though a bit too opportunistic, for the president to begin and end his State of the Union address with references to Iraq, and the sacrifices of the troops. The war has been a disaster for the United States, and for the Iraqi people, of course. But the subject has always been a win-win for him. Whenever he talks about Iraq, it serves as a not-so-subtle reminder about who got us into this mess (i.e. not him).
Others might gripe about the president wrapping himself in the troops, and the flag (or, in the case of this speech, the troops’ flag). But Americans are rightly proud of our military, and there is nothing wrong with invoking the spirit of service and sacrifice that animates the members of our military. (There is something wrong with suggesting that all Americans should act as members of the military do, a point that Ben Friedman makes in a separate post.)
But while some degree of chest-thumping, “America, ooh-rah” is to be expected, this passage sent me over the edge:
America is back.
Anyone who tells you otherwise, anyone who tells you that America is in decline or that our influence has waned, doesn’t know what they’re talking about. …Yes, the world is changing; no, we can’t control every event. But America remains the one indispensable nation in world affairs – and as long as I’m President, I intend to keep it that way.
Have we learned nothing in the past decade? Have we learned anything? To say that we are the indispensable nation is to say that nothing in the world happens without the United States’ say so. That is demonstrably false.
Of course, the United States of American is an important nation, the most important, even. Yes, we are an exceptional nation. We boast an immensely powerful military, a still-dynamic economy (in spite of our recent challenges), and a vibrant political culture that hundreds of millions of people around the world would like to emulate. But the world is simply too vast, too complex, and the scale of transactions in the global economy is enormous. It is the height of arrogance and folly for any country to claim indispensability.
The president is hardly alone, however. Many in Washington—including some of his most vociferous critics in the Republican Party— celebrate the continuity in U.S. foreign policy as an affirmation of its wisdom. The president’s invocation of the “indispensable nation” line from the mid-1990s is merely the latest manifestation of a foreign policy consensus that has held for decades.
But the world has changed, and is still changing. Our grand strategy needs to adapt. When we embarked on the unipolar project after the end of the Cold War, the United States accounted for about a third of global economic output, and a third of global military expenditures; today, we account for just under half of global military spending, but our share of the global economy has fallen below 25 percent.
What we need, therefore, is a new strategy that aims to promote our core interests, but that doesn’t expect U.S. troops and taxpayers to also bear the burdens of promoting everyone else’s. After all, the values that are so important to most Americans, and that the president cited in his speech last night, are also cherished by hundreds of millions, perhaps billions, of people in many countries around the world. It is reasonable to expect them to pay some of the costs required to advance these values, and to sustain a peaceful and prosperous international order. Our current strategy still presumes that it is not.
Tonight on Stossel: Ron Paul, War, and Military Spending
The GOP presidential candidates will participate in yet another debate tonight from South Carolina in anticipation of the primary there on Saturday. I hope that the moderator, CNN’s John King, will bring up some of the major national security issues at hand, namely military spending.
Out of all the GOP contenders, it is clear that Ron Paul is the only candidate still standing that offers an alternative to the entrenched Republican foreign policy views. Some have called his foreign policy positions naïve and outside the mainstream. Others point to the fact that Ron Paul is so popular precisely because he is outside the mainstream and presents a different perspective on the intertwined issues of national security and military spending. Of course, the “mainstream” views on foreign policy are relative: what is common thinking inside the Beltway is not usually representative of the country.
Tonight at 10 PM EST on Fox Business Network’s Stossel, a host of experts will discuss Ron Paul’s foreign policy views, war, and whether the federal government has gone too far in its Constitutional obligation to defend the homeland. I will be discussing military spending and argue that we can cut the Pentagon’s budget and be more secure for it.
Setting the Record Straight on Military Spending Levels
As David Boaz recently demonstrated, the jeremiads emanating from Washington over proposed cuts in military spending are unfounded. Howard P. “Buck” McKeon’s op-ed in today’s Washington Post is only the latest to decry the “damaging blow to our military” that will be done by “massive defense cuts.”
Not only is Pentagon spending not at its lowest level in 60 years, as the Heritage Foundation claimed, it will not fall to such a level even if the Budget Control Act’s sequestration spending caps are implemented. David shows that charts can obscure the relevant facts or contribute to poor arguments.
But charts can also help shed light on the truth. For example, in the first chart below, prepared by my colleague Charles Zakaib, one might conclude that the reductions being contemplated as an outgrowth of President Obama’s strategic review (the brown line) would represent a dramatic cut in the Pentagon’s base budget. The automatic sequester cuts (the red line at the bottom) appear even more draconian.
Misleading Images on Defense Spending
The Washington Examiner ran this Heritage Foundation chart on January 10 under the title (not online) “Defense spending at lowest levels in 60 years”:
Dramatic, eh? It shows defense spending plunging for the past 40 or more years. Except . . . wait a minute . . . has defense spending plunged? This chart from the Cato Institute’s Downsizing Government project sheds some light:
In fact, Pentagon spending in real, inflation-adjusted dollars has roughly doubled since 2000 and is up about 50 percent since 1970, at the height of the Vietnam War. (And note that the recent figures don’t include the cost of the ongoing wars.) So what’s going on? Why the difference in the charts? The Heritage chart, of course, focuses on Pentagon spending as a percentage of the federal budget. And what has happened to the federal budget in the past 40 years? Well, as it happens, another Heritage Foundation chart shows that pretty clearly:
Obviously, the big story in the federal budget over the past 40 years is the dramatic rise in spending on transfer payments. Does the Heritage Foundation really want to suggest that when spending on Social Security, Medicare, and Medicaid rises, military spending should rise commensurately? That when President Bush creates a trillion-dollar Medicare prescription drug entitlement, he should also add a trillion dollars to the Pentagon budget to keep “Defense Spending as a Percentage of the Federal Budget” at its previous level?
Cato and Heritage scholars have often differed on U.S. foreign policy and the defense budget that it implies. But surely neither group would actually suggest that U.S. national security should be measured by the relationship of military spending to entitlement spending. Surely we would agree that military spending must be sufficient to ensure U.S. security and not tied to some extraneous factor. So I invite the creators and promoters of the above chart to explain exactly what they think it proves.
By the way, Heritage’s Rob Bluey, in introducing this chart, writes, “The chart also debunks the myth that our Founding Fathers were isolationists.” But again context matters. I’ll leave the debate over foreign policy in the early Republic to another day. But if total federal spending in 1820 was $19.4 million, and 53 percent of it was for defense, what that tells us is that the federal government was wonderfully small in the early years of the Republic. I’m pretty sure that $10 million military budget didn’t pay for two wars, troops in 150 countries, or a million-man standing army.
Too Much Ado about the Pentagon’s New Strategy
There’s more to the Pentagon’s new strategy than the emperor’s new clothes, but barely. It’s hardly new and not particularly strategic.
The document justifies a minor defense budget cut. The Obama administration wants to grow military spending at a pace slightly less than projected inflation for a decade. If we assume that plan stays in place—and we shouldn’t given that plans change, and we may soon have a new president—that new spending trajectory will cut non-war Pentagon spending by about eight percent compared to 2011 spending. You can come up with bigger numbers for the cut by comparing the new plans with past Pentagon spending plans or by including declining war costs. But however you slice it, these are small cuts compared to past drawdowns.
Conventional wisdom is that the cuts ought to be made strategically—that it is bad policy to let deficit concerns drive the size of the defense budget, so revised numbers require revised strategy. This new strategy document is a response to that conventional wisdom. It lets the president and Pentagon say that they have a strategic rationale for their budget.
Meanwhile, the Pentagon is desperate to avoid the sequestration mechanism required by the Budget Control Act, which would roughly double the size of those cuts, and would start in January 2013. That would return military spending to where it was in 2006, more or less. Pentagon leaders complain about the suddenness and broadness of sequestration—the cuts are distributed across programs and departments, which prevents prioritization.
One function of this new strategy document is to help avoid additional cuts. By making minor changes seem like a big deal, the Pentagon is pushing back against real strategic change, which could save far bigger sums without sacrificing safety.
In an op-ed published Friday in World Politics Review, Veronique de Rugy and I argue that the size of the coming defense cuts has been grossly exaggerated. Here’s a chart from the op-ed showing military spending in current dollars with and without sequestration:
We note in the op-ed that under the Budget Control Act, the Pentagon can avoid sequestration without Congressional action by budgeting at the levels it would achieve. That would allow it to avoid the most onerous aspects of the sequester. The Pentagon has thus far refused to do that, probably figuring that offering sensible cuts would encourage Congress to allow them. But far larger cuts are possible with real strategic change. Big cuts would encourage that sort of change.
The current U.S. defense strategy is basically primacy or global military dominance. It requires policing the seas, maintaining or strengthening current alliances, and preparing for all manner of military contingencies. Both parties’ foreign policy elites basically embrace that strategy. The documents that purport to make strategy—Quadrennial Defense Reviews and so forth—are basically sales pitches for primacy. Their standard blueprint is to mix geopolitical gobbledygook about uncertainty with vague threat inflation, assert the importance of U.S. global leadership to U.S. security without any clear theory, then list things we want our military to do, without any attempt to separate big threats from small ones and large interests from hopes, or to translate their analysis into budgetary guidance. They have no obvious effect on budgets.
This strategy offers only minor change in form and content. It embraces the strategy we have with at best a few minor tweaks. Like those past strategy documents, this effort insists that the world is getting more complex but makes no effort to demonstrate that assertion. It lists ten objectives without prioritization, although it identifies certain goals as those that drive the size of the force. It suggests a few minor shifts but gives no budgetary guidance.
The document suggests that we might shift forces from Europe and perhaps add some in Asia. No details are given. It sensibly suggests we might get by with fewer nuclear weapons but again avoids details. The most relevant bit of the document is the argument that we are less likely to fight occupational wars and thus can cut the size of the ground forces. That is a sound idea, one that should be taken further, but a reflection of current policy rather than a change. If we are really to avoid such wars, far greater cuts in the ground forces are possible.
So what we have here is a largely inconsequential defense of the status quo. It offers incremental changes to stave off the real strategic change and savings that our geopolitical fortune allows.
What the Pentagon’s New Military Strategy Should Look Like
President Obama, Defense Secretary Leon Panetta, and Joint Chiefs Chairman Martin Dempsey are scheduled to brief the media tomorrow morning on the recently completed strategic review that will inform the Pentagon’s budget priorities for the coming five to ten years. Early indications suggest that the status quo will hold. And that is bad news for U.S. troops, and U.S. taxpayers.
Obama, Panetta, and Dempsey should clearly spell out:
- The types of missions that the U.S. military will be expected to perform on a regular basis
- Those operations that the military will occasionally conduct on short notice, and for short periods of time
- How defense capacity can be augmented in those very rare cases calling for significant mobilization of additional resources.
Some suggest that the strategy document will abandon the requirement that the Pentagon must be prepared to fight two sustained ground wars at the same time, something that the country hasn’t done since well before Barack Obama was born. Such a change, if true, should be welcomed.
It is significant the president is attending, and the most important questions should be reserved for him. It is particularly incumbent upon the civilian leadership within the Obama administration, beginning with the president himself, to spell out their intentions regarding the use of force, and of the role of the U.S. military more broadly. These should go beyond vague signals; our military leaders shouldn’t be forced to guess what missions that they will be asked to perform. The president must tell them.
A Do-It-Yourself Guide to Cutting the Military Budget
The New York Times has posted a handy tool for calculating savings from the Pentagon’s budget over the next ten years. I went through the exercise, and my plan resulted in cuts of $1.144 trillion over ten years. Had I checked all of the boxes in the Times’s calculator, it would have generated savings of up to $1.4 trillion.
Though I support reform of the the military retirement system, I think some of these proposals go too far (they would have saved up to $86.5 billion). We should continue to spend money recruiting the very best force, comprised of the most-qualified men and women ($5 billion), and we might find it hard to do that if/when the economy improves. Tuition assistance is a key factor driving recruitment, and I wouldn’t scale that back ($5 billion). (Full disclosure: I attended college on an NROTC scholarship.) We need the best possible services for families, and I could foresee problems with closing elementary and secondary schools on bases ($10 billion). And I have no particular quarrel with military bands ($0.2 billion). My ideal military will be smaller and more elite, but likely better compensated than today’s force. And retirees would continue to receive many benefits not enjoyed by their fellows who never served, but we should experiment with ways to control costs. The key take-away, and the one stressed in the accompanying story by Elisabeth Bumiller and Thom Shanker, is that it is possible to reduce military spending, and the resulting force will still be larger and more capable than any conceivable combination of rivals.
A few additional observations:
1) The Times’s calculator cites my and Ben Friedman’s contribution to the Sustainable Defense Task Force report, “Debts, Deficits, and Defense,” but the main part of the report was the work of the entire task force, and they deserve proper credit. I am particularly grateful to Carl Conetta and Charles Knight of the Project for Defense Alternatives.
2) Ben and I published a stand-alone report a few months later with some numbers drawn from the SDTF report, and with some additional detail surrounding our proposals that were not endorsed by all SDTF members. Our savings were calculated against the baseline from fiscal year 2010, and these numbers are now a bit dated.
3) When I hit the submit button comparing my choices with others who participated in the exercise, I discovered 80 percent of respondents supported the plan to reduce forces in Europe and Asia. That sort of systematic restructuring is necessary to ensure that we don’t impose undue burdens on what will necessarily be a smaller force. As I have said repeatedly, if we are going to spend less, we must expect our troops to do less, and expect other countries to do more.
The Defense Authorization Bill: Still Troubled
Both Houses have now passed the 2012 Defense Authorization Bill. The president, having dropped his veto threat, will sign it today. That’s too bad.
Authorization bills, keep in mind, are essentially a collection of restrictions and permissions slips for appropriations. In practice, however, budgeteers and appropriators have more say over how we spend. So while authorizers share responsibility for our bloated military spending, I’ll save my customary complaints on that topic for the appropriations bill and focus here on the new policies this bill sets.
On the positive side, the bill creates several reporting requirements that slightly aid future efforts to trim our military ambitions and spending. It requires the Pentagon to look at accelerating the minor drawdown in nuclear weapons required by the New Start Treaty. Another report is to examine options for shrinking our ballistic missile submarine fleet, which could save several hundred billion dollars annually. The bill also requires the administration to produce “independent” studies of overseas basing costs and opportunities for savings. These reports are not likely to themselves promote much change, but they might serve as ammunition for those that do.
A little-noted problem with the bill is that it authorizes the shift of base Pentagon spending to the Overseas Contingency Operations account—the war account. Because the Budget Control Act caps military spending but not war funding, costs shifted from the former to the latter reduce the cuts needed to get under the caps, creating an illusion of savings. Appropriators are trying to protect around $10 billion in base defense costs for 2012 using this ploy. Analysts are still figuring how big a shift in funds the authorization bill endorses. But as Taxpayers for Common Sense has noted, the answer is at least several billion.
Live Commentary on Tonight’s GOP Debate
The American Enterprise Institute, the Heritage Foundation, and CNN are set to co-host a national security presidential debate at 8:00 pm ET tonight.
Get commentary on the debate as it happens from Cato Institute foreign policy scholars:
- Follow Malou Innocent via Cato’s foreign policy Twitter feed, @CatoFP.
- Follow Christopher Preble on Twitter via @CAPreble.
- Follow Justin Logan as he live blogs at RealClearWorld.
Earlier Christopher Preble offered some questions the candidates should answer. You can tweet suggested questions to @WolfBlitzerCNN with the hashtag #CNNDebate.
GOP National Security and Foreign Policy Debate: What to Ask the Candidates
The economy is likely to dominate next year’s presidential race, so it is surprising that Republicans would choose to conduct two debates focused on foreign policy in the span of 10 days. The first, co-hosted by CBS News and National Journal, was held last Saturday evening. (CBS apparently thought most people had better things to do; they preempted the final 30 minutes with an NCIS rerun.) CNN, no doubt, hopes that the sequel, to be held Tuesday, November 22, will draw a wider audience.
I wonder if the RNC hopes that it doesn’t. In fact, there are many reasons why GOP leaders would want to get the whole subject of foreign policy and national security out of the way well before next year. Let Michele Bachmann and Rick Santorum wax poetic about the wisdom of waterboarding, and let them do it after television viewers have stopped watching. Better to save the talk of joblessness and massive federal debt for the main event with President Obama, when tens of millions of Americans, including many independents and undecided voters, might actually rely on the debates to inform their choices. (Unlikely, I know, but hope springs eternal.)
Foreign policy blunders have cost the GOP votes in three of the last four elections. (It was a non-factor in 2010.) Once trusted by the electorate as the voice of prudence and reason when it came to diplomacy and the use of force, the Republican brand has been sullied by the war in Iraq and the quagmire in Afghanistan.
One might think that the party has learned its lessons, and that those aspiring to carry the GOP banner into next year’s elections would be determined to draw distinctions between themselves and the recent past.
Judging from last Saturday’s debate, they haven’t. The answers provided by the presumptive front-runner, Mitt Romney, and his leading challengers, Herman Cain and Newt Gingrich, reveal a reflexive commitment to the status quo and an unwillingness to revisit the rationales for war with Iraq or for nation-building in Afghanistan. They hinted at expanding the U.S. military’s roles and missions to include possible conflict with Iran. They continued to speak of a “war on terror.” And they struggled to draw distinctions between themselves and President Obama, at times criticizing him for doing too little, other times for doing too much.
In advance of last week’s debate, several bloggers suggested some questions. Some of these made it to prime time. However, two big sets of questions—one pertaining to the lessons of Iraq and Afghanistan, the other related to the costs of our foreign policies—remain unexplored. I hope that the questioners in next week’s debate, or perhaps the other candidates, would try to get some answers. Be sure to follow me on Twitter (@capreble) for a conversation during the debate. Justin Logan will also be live-blogging the event over at RealClearWorld.
In the meantime, here are some questions I would like answered:
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