New debt deal reveals US addiction to war

Release time：2024-04-30 03:56:37 Source：Global Grandeur news portal

U.S. President Biden signed the Fiscal Responsibility Act on June 2, 2023, officially ending the debt crisis – for now. The act agrees to restrict spending on civilian duties in exchange for a suspension of the debt ceiling. However, the act's credibility is undermined by its failure to cut or impose restrictions on military spending, revealing the U.S. government's addiction to war. 

Analysis of actual spending by the U.S. Department of Defense (DoD) indicates that reductions in military expenditure are highly unlikely. From 2020 onwards, annual U.S. military expenditure has topped $800 billion each year, constituting approximately half of discretionary spending of the federal government. 

Under the new debt ceiling agreement, the budgetary allocation for defense programs will increase from $858 billion in fiscal year 2023 to $886 billion in fiscal year 2024 and $895 billion in fiscal year 2025. 

U.S. Military Spending/Defense Budget 1960-2023 (Source: Macrotrends.net)

With rampant spending and the suspension of debt ceilings until 2025, curbing the defense budget becomes unrealistic, signaling a potential exacerbation of U.S. debt solvency. On June 7, 2023, merely five days after the act's passing, U.S. Treasury Secretary Janet Yellen announced the issuance of an additional $1.3 trillion in federal debt over the summer.

While the U.S. government pretends to make an effort to limit the budget, the military budget is projected to increase in alignment with Biden's budget proposal. In contrast, non-defense discretionary spending is expected to remain "roughly flat" at current year levels in 2024 as per the Fiscal Responsibility Act. This act, supposed to ensure financial health, restricts low-income Americans from accessing welfare benefits, particularly the SNAP food stamp program, demonstrating the U.S. government's preference for military expenditure over public welfare.

Recently, the U.S. has expanded its military presence overseas. Over the past four months, the U.S. has established four additional bases in the Philippines, extended Free Compact deals with the Federated States of Micronesia and Palau to secure its military presence in both nations, and signed a historic military pact with Papua New Guinea allowing U.S. troops to use the country's airports and harbors.

According to Reuters, President Biden plans to grant further military aid to Ukraine in August or September under the guise of "supplementary spending," which is not restricted by the fiscal act.

Despite the federal government grappling with enormous deficits, the U.S. Military-Industrial Complex (MIC) has accumulated vast wealth. In recent decades, several MIC companies have emerged as top lobbyists in Washington. Since the outbreak of the Ukraine crisis, the U.S. has committed up to $40 billion in military aid to Ukraine. As major MIC companies rank among the top-ranked DoD contractors, the conflict offers an opportunity for them to profit significantly.

Jeffery D. Sachs, a professor at Columbia University, argued that the solution – ceasing America's wars of choice and slashing military spending – is overlooked by both Republicans and Democrats. "To surmount the debt crisis, America needs to stop feeding the Military-Industrial Complex, the most powerful lobby in Washington," said Sachs.

In essence, the Fiscal Responsibility Act is a temporary measure to postpone the U.S. debt crisis. It proves that U.S. politicians and the MIC are determined to maintain global military hegemony at the expense of people worldwide, including average Americans.

Related articles