01-26-2012, 01:40 AM
I think we are currently in a bubble -- a government bubble. If the economy is $14.5 trillion and the deficit is roughly $1.5 trillion, doesn't that mean we are roughly in a 10% bubble?
Politics aside, I do worry about what's going to happen as we start to draw down our current level of spending. I don't see where we can keep doing it indefinitely, but the deficit alone is as much as 10% of GDP. The Army is apparently going to cut back by 80,000 troops -- that's kinda like hearing about some big corporation laying off 80,000 people. I don't think there's a choice, but that is 80,000 less job openings.
- Marine Corps dropping about 20,000 troops
- "New round of domestic base closures" -- that usually decimates the town they were in
- Navy cutting a total of 16 new ship build orders over the next 5 years
Again, I'm not suggesting we should not cut the military budget, but from a standpoint of "what's the future of the economy", I see hundreds of billions of dollars in jobs that will be leaving the economy as we start trying to back out of the "government bubble".
Politics aside, I do worry about what's going to happen as we start to draw down our current level of spending. I don't see where we can keep doing it indefinitely, but the deficit alone is as much as 10% of GDP. The Army is apparently going to cut back by 80,000 troops -- that's kinda like hearing about some big corporation laying off 80,000 people. I don't think there's a choice, but that is 80,000 less job openings.
- Marine Corps dropping about 20,000 troops
- "New round of domestic base closures" -- that usually decimates the town they were in
- Navy cutting a total of 16 new ship build orders over the next 5 years
Again, I'm not suggesting we should not cut the military budget, but from a standpoint of "what's the future of the economy", I see hundreds of billions of dollars in jobs that will be leaving the economy as we start trying to back out of the "government bubble".