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US Defense Economics

US is facing shortage of budget in meeting its national defense requirements. It was much less than the peak years of war 2007-11 and stands on $733 Billion for the fiscal year 2019 while US administration plans to cut it down up to $700 billion for year 2020. The defense budget constitutes 3.5 percent of GDP which is affordable defense budget for the United States which used to represent 5 to 10 percent of GDP during Cold War days, a much relief to US economy. Trump administration is seeking to cut down federal trade deficit worth $1 trillion which again a very big deal and defense spending cannot be compromised.

The democratic majority in Congress will never support any reduction in national defense budget and will urge administration to efficiently use whole budget. On the other hand, Congressional Committee which probed National Defense Strategy recommends at least three percent growth per year in defense spending for indefinite period of time. On the contrary to Trump military advisers, Pentagon too expects hike in annual defense budget and debate is still hot. This hike is expected in the wake of Pentagon’s plan to increase man power of standing army from 480,000 soldiers to 500,000, Navy seeks enhanced size of fleet from 285 warships to 355 while Air Force comes up with a plan to raise squadron numbers to 386 from 312. For sure

For sure, US service men face far extended deployments and must need an opportunity to serve in home garrisons thus it seeks to raise number of soldiers. But the proposed hike in budget by Congressional committee stressed more innovation, well equipped and trained forces which also can reduce burden on man power in the wake of US capability of global reach. This is more efficient idea for US defense economy and modern warfare.

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