Whack: Defense cuts inevitable in face of collapsed economy

by YankeeJim | August 9, 2010 at 02:11 pm

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Whacking the defense budget is essential to get the size of government in line with the GDP and to control the deficit. This can be accomplished without jeopardizing National Security. In fact, there is much overlap between the DOD and Homeland Security that needs addressing too.

The American government should shrink by a third at least.

Trouble is, all of the jobs lost will increase unemployment. Yet, that’s a part of the idea. More people in the labor market drives down the cost of labor. Deflation is needed to get into competitive equilibrium with the global market.

Yes, it will be difficult to keep the economy from depressing, but deflating is essential.

“Gates: Pentagon to cut thousands of jobs

By Craig Whitlock

Washington Post Staff Writer
Monday, August 9, 2010; 5:46 PM

Defense Secretary Robert M. Gates said Monday that the Pentagon will cut thousands of jobs -- including nearly a third of its regular budget for contractors and an entire military command based in Norfolk -- as part of an ongoing effort to streamline its operations and stave off political pressure to slash defense spending in the years ahead.

Gates said he will recommend that President Obama dismantle the U.S. Joint Forces Command, which employs 2,800 military and civilian personnel as well as 3,000 contractors, most of them in southeastern Virginia. He also said he will terminate two other Pentagon agencies, impose a 10 percent cut in intelligence advisory contracts and slim down what he called a "top-heavy hierarchy" by eliminating at least 50 jobs reserved for generals and admirals.

"The culture of endless money that has taken hold must be replaced by a culture of savings and restraint," Gates told a news conference at the Pentagon. "I am determined to change the way this department has done business for a long time."

The announcement sparked immediate protests from Virginia's state lawmakers and its congressional delegation, who said they will fight to overturn Gates's plan, although it was unclear what recourse they might have. Defense officials said the Obama administration could make the cuts without congressional approval.

"We are now seeing the piecemeal auctioning off of the greatest military the world has ever known," said U.S. Rep. J. Randy Forbes (R-Va.), whose district includes Chesapeake and other parts of southeastern Virginia. ". . . The American people will see this decision for what it is: a first step in a long string of national defense cuts that will systematically and intentionally gut the institutions that protect and defend the freedoms and liberties upon which our nation was founded."”