Durable Goods: More Guns Than Butter

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.