What the Military Budget has to do with the US Federal Budget Deficit and Debt Ceiling
The bond rating agencies that gave junk derivatives triple-A ratings threatened to downgrade US Treasury bonds if the White House and Congress do not reach a deficit reduction deal and debt ceiling increase.
Meanwhile, the total military/security budget is in the vicinity of $1.1-$1.2 trillion, or 70% -75% of the federal budget deficit.
[Yet another factor disregarded in the budget deficit discussion:] Taxing the rich is also not part of the political solution. Instead, the focus is on rewarding the insurance companies by privatizing Medicare at some future date with government subsidized insurance premiums, by capping Medicaid, and by loading the diminishing middle class with additional Social Security tax.
However, Social Security is solvent. Medicare expenditures are coming close to exceeding the 2.3% payroll tax that funds Medicare, so it is dishonest for politicians and pundits to blame the US budget deficit on “entitlement programs.”
What is clear is that war is a far more important priority than health care and old age pensions. The way to get the budget under control is to stop the gratuitous hegemonic wars, wars that will end in a nuclear confrontation.
The American people and their wants and needs are not represented in Washington. And economic destruction always occurs when an oligarchy seizes control of a government.
[Excerpts of an article by Paul Craig Roberts, professor of economics, former Assistant Secretary of the US Treasury, and Associate Editor of the Wall Street Journal]