Archive for the 'Defense Budget' Tag
What seems obvious in hindsight is not, for most, that obvious to those closest to it, distracted from it, or willfully floating along in a sea of indifference.
There are times, decision or pivot points for some, where the signs become clear. That steady, darkening, and thickening line starts to burn through the ambient noise. It looks familiar, it is harmonic of what you have seen before – it cannot be ignored. It demands action
You only get the Fleet your nation decides to buy, more people need to accept that … and the political and economic reality we are in.
Former Senator Hagel has been nominated to be the next Secretary of Defense. In an August 2011 interview with The Financial Times’ Stephanie Kirchgaessner, he stated the following;
The defence department, I think in many ways has been bloated.
I think the Pentagon needs to be pared down. I think we need the Pentagon to look at their own priorities.
There’s a tremendous amount of bloat in the Pentagon, and that has to be scaled back …
I don’t think that our military has really looked at themselves strategically, critically in a long, long time. Every agency needs to do that. The Department of Defence, and I’m a strong supporter of this … no American wants to in any way hurt our capabilities to national defence, but that doesn’t mean an unlimited amount of money, and a blank cheque for anything they want at any time, for any purpose. Not at all. Not at all, and so the realities are that the mess we’re in this country, with our debt and our deficits, and our infrastructure and jobless and all the rest, is going to require everybody to take a look, even the defence department, and make a pretty hard re-evaluation and review.
President Obama picked Hagel for very specific reasons, and his views above are not unknown and were part of that. Good people can agree or disagree on the substance of his argument, but that is the fact both sides will have to work with.
Next, let’s look to the uniformed side of the house. In a speech at SNA earlier this week, Vice Admiral Copeman stated the following;
Ultimately, (Copeman) warned, “if you don’t want to get hollow, you have to give up force structure.”
“Resources are going to drop. They’re going to drop significantly,” the admiral said. … “If it were my choice,” Copeman said, “I’d give up force structure to get whole. But it’s not always my choice.”
There are just a few tidbits of I&W to ponder.
In the last few years, we have heard a lot of talk about a Fleet of 313 and now 300. Many of us have been arguing for half a decade that neither is the number we should be looking at, that is not what the nation will fund; 270 to 240 is more likely.
“If we cannot have the navy estimates of our policy, then let’s have the policy of our navy estimates.”
If this is the maritime Zeitgeist for the remainder of this decade, then let’s embrace it. We can’t stomp our feet and hold our breath until the Pentagon turns blue.
How do we best do it? What do we need to preserve – what should we cut – what will we have to get rid of root-n-branch?
What are our priorities?
The smart money on the future is on who the CINC is hiring, what that hire’s recent statements say about his ideas, and what our senior officers are starting to send out trial balloons on to test the winds.
It is comfortable to say, “We are 5-10 yrs behind the Europeans when it comes to our budget challenges.” – I guess.
With the expansion of the budget deficit of the last few years and no move to make a serious effort to fix it, we are much closer to 5 years, if not inside that mark.
The now quaint Fleet number of 313 of just a few years ago was never taken seriously by anyone with a basic understanding of economics even before the latest budget issues, and the interesting accounting of the Fleet of 300 that we see today is also a non-starter.
Why make such a negative statement? Simple – budgetary gravity.
Back in 2008, European military budgets were sad in any event as a % of GDP. As demographics join with the inevitable default of the Western welfare state takes place in front of us, after a few years – we have this via our friends from DefenseNews.
Well – you can break these reduction in to three batches.
1. Doable at 5% or less: Norway, Sweden, or Germany.
1.a. Odds: minimal.
1.b. Reason for odds: We won’t be this lucky. Norway has averaged a budget surplus for over a dozen years; different planet. Sweden and Germany already made structural changes to their government systems – Sweden in the 1990s and Germany a little more than a decade ago. As a result – the budgetary stress on the defense budget is small to non-existent from the 2008 baseline. If we act soon to address larger budgetary issues though, odds of this taking place increase.
2. Painful but workable at 5% to 20%: yes, in order to protect the economic foundation that national survival requires – a 20% cut is workable. Netherlands, UK, Poland & France.
2.a. Odds: most likely.
2.b. Reason for odds: unlike Europe, we don’t have anyone we trust that we can point to and say, “Oh, they’ll take care of the international order.” These are serious nations with a serious dedication to military requirements – but they are doing what they feel them must – as shall we. Unlike those nations though, we still have a lot of inertia to maintain a global reach; close to 5% than 20% if we are lucky. More than 20% in the face of a climbing China is just hard to fathom for the USA unless ….
3. Budgetary POMageddon at 20% to 50%: if you wait too long to act on your structural budgetary challenges – the more difficult the fix. You will take on more national security risk in order to try to keep domestic tranquility. Italy, Spain, Greece, & Ireland.
3.a. Odds: small, but not minimal.
3.b. Reason for odds: Without a two-party consensus to make such a huge cut in defense, it is hard to see larger than 20% in the next half decade outside of a complete economic meltdown. With each year we delay having a budget (Senate over 1,130 days without a budget plan) and/or a view to a plan to fix present trends, the more the odds for this option grow.
So, what could POMageddon mean to the Navy? Well – let’s go to Group 3 above – Italy. Again from our friends at DefenseNews;
Italy is considering selling or donating up to one-third of its naval fleet in a bid to earn quick cash and slash maintenance costs.
The Italian Navy would be the first off the mark wit a plan to sell or donate up to 28 vessels over the next five or six years … (out of) 82 ships and six submarines. …
So, 28 out of 88 ~ 32%.
Let’s run with the fuzzy 300 ships. A 32% reduction would be a cut of 96 ships to a fleet of 204.
What was my worse case scenario a couple of years ago, 240? That would be a 20% reduction in five years. All of a sudden, doesn’t look all that out of control … if you consider what has happened to Europe.
Let’s be optimistic and cut that in half to a 10% reduction. 270 ships in 5-years. Let’s model and plan for that and consign 300 ships with 313 ships as they hang out with all those TQL books in the storage room.
Five months and a bit to the November 2012 election.
The war in Iraq is over, the war in Afghanistan is adrift – but the underlying cause of both remains. OBL is dead yet the drone wars expand.
Our traditional European allies have never been weaker in living memory. The old order in the Arab world is changing, and the western Pacific grows in focus.
A military worn out by a decade of war is also looking at decreasing resources in a sluggish economy.
Where do we prioritize? What is the best mix of strategy and programs to best prepare our military for the challenges of this century?
Which issues related to national defense will make it in to the 2012 contest? How do President Obama and Governor Romney differ in their views, plans, and priorities for our nation’s military?
Our returning guest for the full hour will be Mackenzie Eaglen, Resident Fellow at the Marilyn Ware Center for Security Studies at the American Enterprise Institute.
Mackenzie Eaglen has worked on defense issues in the U.S. Congress, both House and Senate, and at the Pentagon in the Office of the Secretary of Defense and on the Joint Staff. She specializes in defense strategy, budget, military readiness and the defense industrial base. In 2010, Ms. Eaglen served as a staff member of the congressionally mandated Quadrennial Defense Review Independent Panel, a bipartisan, blue-ribbon commission established to assess the Pentagon’s major defense strategy. A prolific writer on defense related issues, she has also testified before Congress.
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