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Has the Military Budget Been Slashed? Is It Effective at Creating Jobs?

The House is having a series of votes on military spending today. The Boston Globe reports today: “Congressional Republicans have begun a drumbeat of opposition to Pentagon cuts they agreed to last summer as part of the debt deal with President Barack Obama, and want to shift the burden of cuts to food stamps, school lunches and other domestic programs.

“Armed with an industry-backed analysis that shows the loss of 2 million jobs — particularly in the aerospace industry in California and the swing state of Virginia — Republicans are blaming Obama in an attack that stretches from Washington to the presidential campaign trail.”

CHRIS HELLMAN, chellman@nationalpriorities.org
Hellman is communications liaison at the National Priorities Project and specializes in the military budget. He said today: “The notion that the military budget has sustained deep cuts in service to deficit reduction is outrageous. The military budget has grown every year for more than a decade — it has grown like a ‘gusher,’ to quote former defense secretary Robert Gates. Now the Department of Defense base budget faces a slim 2.5 percent cut in fiscal 2013. This myth that the military has been hit hard is holding up progress in today’s budget debates.”

HEIDI GARRETT-PELTIER, hpeltier at econs.umass.edu
Assistant research professor at the Political Economy Research Institute at the University of Massachusetts, Amherst and co-author of the report “The U.S. Employment Effects of Military and Domestic Spending Priorities: An Updated Analysis,” Garrett-Peltier said today: “My calculations show that the arms industry’s claims about increased unemployment are vastly exaggerated. A billion dollars spent on military production created about 11,000 jobs, compared to about 17,000 from clean energy, 19,000 from health care, and 29,000 from education.”

She also co-wrote the piece “Benefits of a Simmer Pentagon: Despite Claims to the Contrary, Cutting Military Spending Could Actually Boost the Economy.”

How to Get Better Jobs Numbers

NOEL ORTEGA, noel at ips-dc.org
Coordinator of the New Economy Working Group, Ortega is a contributor to the report “JOBS: A Main Street Fix for Wall Street’s Failure,” which states: “The current U.S. jobs debate is largely limited to arguing the relative merits of stimulating the economy by increasing government spending or by granting more deregulation and tax breaks to the rich and to Wall Street corporations. The need for action to correct the institutional failure that caused the jobs crisis is largely ignored.” The report lists concrete actions:

1. “Redefine our economic priorities by replacing financial indicators with real-wealth indicators as the basis for evaluating economic performance.

2. “Restructure the money system to root the power to create and allocate money in Main Street financial institutions that support Main Street job creation.

3. “Restore the middle class by restoring progressive tax policies and a strong and secure social safety net.

4. “Create a framework of economic incentives that favor human-scale enterprises that are locally owned by people who have a natural interest in the health and well-being of their community and its natural environment.

5. “Protect markets and democracy from corruption by concentrations of unaccountable corporate power.

6. “Organize the global economy into substantially self-reliant regional economies that align and partner with the structure and dynamics of Earth’s biosphere.

7. “Put in place global rules and institutions that secure the universal rights of people and support democratic self-governance and economic self-reliance at all system levels.”

Yesterday, the United Nations released a report titled “World Economic and Social Survey 2012: In Search of New Development Finance” which proposes raising $400 billion by mechanisms such as a 1 percent wealth tax on billionaires.