Saturday, September 08, 2007

Bush’s War Machine by the Numbers…

Re(1): 'Joe Sixpack on Taxes', The Fly Bottle, Will Wilkinson
Re(2): 'The July 2007 Monthly Treasury Statement', Department of the Treasury
Re(3): 'Monthly Treasury Statement', Department of the Treasury
Re(4): Bureau of Labor Inflation Calculator

Some poor Lefty (Alphie) posted the usual blather at Will Wilkinso’s ‘The Fly Bottle’ blog stating:

And the $400+ billion the U.S. government paid in interest last year(mostly to foreigners) on the money it borrowed in the past instead of rasing through taxes?

Even Joe Sixpack realizes that if he runs off to Vegas and blows his mortgage money on a good time…there will be a cost.

When he sobers up, that is.
(Spelling errors his)

The poor sod.

He is off by $29 Billion on the interest payment – in his favor!!!

And:

Off by a massive $161 Billion on his DOD spending. That is a 30% error.
So, I got to thinking…

Just how big is Bush’s War Machine…

Some facts first:

The GDP in 2000 was 9.8 Trillion
The GDP estimate for 2007 is $13.5 Trillion.
Thus, GDP in 2007 in 2000 dollars is 11.2 Trillion

DOD spending in FY2000 was $281 Billion
The DOD FY2007 spending estimate is $539 Billion
Thus, DOD FY2007 spending in 2000 dollars is $445 Billion

Some opinion:

Very few associated with the military found the DOD spending acceptable. Anyone remember running out of Tomahawk missiles in October 2001? Anyone remember any new military technology that was developed in the Clinton era? Anything we did not have in 1992? Anything at all? Maybe some up-armored HMMVEs?

So my opinion is that we had to spend a bit more in the DOD to compensate for Clinton Era cutbacks. We all know the military ‘survived the Clinton Era!!!’. But, just barely

Now the Math (in 2000 dollars):

Bush has grown the DOD budget by:

$445 Billion - $281 Billion = $164 Billion.

In that time, Health and Human Services grew by:

$561 Billion - $390 Billion = $171 Billion

With Tax Revenue Growth of:

$2,127 Billion - $2,025 Billion = $102 Billion

And, a FY2007 deficit of probably $120 Billion ($99 Billion in 2000 dollars). With a balanced budget – or even a surplus – in FY2008!!!

Thus, under Bush,
The DOD expenditures are 3.7% of GDP
The Health and Human Services expenditures are 5.0% of GDP
The DOD expenditures are 20.9% of Tax Revenue.
The Health and Human Services expenditures are 26.4% of Tax Revenue

Thus, under Clinton,
The DOD expenditures are 2.9% of GDP
The Health and Human Services expenditures are 4.0% of GDP
The DOD expenditures are 13.9% of Tax Revenue.
The Health and Human Services expenditures are 19.3% of Tax Revenue.


That War Machine is costing 0.8% of GDP and 7% of Tax Revenue. There are no serious experts who think we should spend less than 4% of GDP on our military. Only folks like Alphie I guess.

So, here is my deal with the Lefty’s:
Let’s cut DOD expenditures by $25 Billion and HSS expenditures by $35 Billion. That is, shave 5% off of each budget!!! Then, with the tax revenue growth President Bush has initiated we shall see a large surplus next year.

Let’s shake on that!!!
The Grand Bargain!!!

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