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To estimate the size of the entire de facto defense budget, I gathered data for fiscal 2006, the most recently completed fiscal year, for which data on actual outlays are now available. In that year, the Department of Defense itself spent $499.4 billion. Defense-related parts of the Department of Energy budget added $16.6 billion. The Department of Homeland Security spent $69.1 billion. The Department of State and international assistance programs laid out $25.3 billion for activities arguably related to defense purposes either directly or indirectly. The Department of Veterans Affairs had outlays of $69.8 billion. The Department of the Treasury, which funds the lion’s share of military retirement costs through its support of the little-known Military Retirement Fund, added $38.5 billion. A large part of the National Aeronautics and Space Administration’s outlays ought to be regarded as defense-related, if only indirectly so. When all of these other parts of the budget are added to the budget for the Pentagon itself, they increase the fiscal 2006 total by nearly half again, to $728.2 billion.
To find out how much of the government’s net interest payments on publicly held national debt ought to be attributed to past debt-funded defense spending requires a considerable amount of calculation. I added up all past deficits (minus surpluses) since 1916 (when the debt was nearly zero), prorated according to each year’s ratio of narrowly defined national security spending—military, veterans, and international affairs—to total federal spending, expressing everything in dollars of constant purchasing power. This sum is equal to 91.2 percent of the value of the national debt held by the public at the end of 2006. Therefore, I attribute that same percentage of the government’s net interest outlays in that year to past debt-financed defense spending. The total amount so attributed comes to $206.7 billion.
Adding this interest component to the previous all-agency total, the grand total comes to $934.9 billion, which is more than 87 percent greater than the Pentagon’s outlays alone.
If the additional elements of defense spending continue to maintain the same ratio to the Pentagon’s amount—and we have every reason to suppose they will—then in fiscal year 2007, through which we are now passing, the grand total spent for defense will be $1.028 trillion. I confirmed the rough accuracy of this forecast by adding up the government’s own estimates of fiscal 2007 outlays for the various additional defense-related items, obtaining a total of $987 billion—an amount only 4 percent less than my ratio-based estimate. Future defense-related supplemental appropriations for fiscal 2007, which would hardly be surprising, might easily bring the lower estimate up the higher one.
Although I have arrived at my conclusions honestly and carefully, I may have left out items that should have been included—the federal budget is a gargantuan, complex, and confusing collection of documents. If I have done so, however, the left-out items are not likely to be relatively large ones. (I have deliberately ignored some minor items, such as the outlays of the Selective Service System and the National Defense Stockpile and the Treasury’s program to block financial flows to terrorists.) Therefore, I propose that in considering future defense budgetary costs, a well-founded rule of thumb is to take the Pentagon’s (always well publicized) basic budget total and double it. We may overstate the truth, but if so, we’ll not do so by much.
For now, however, the conclusion seems inescapable: the government is currently spending at the rate of approximately $1 trillion per year for all defense-related purposes. Moreover, even if I have erred in my calculations and overstated the correct amount somewhat, the total will certainly reach this astonishing sum very soon, given all the plans and programs already set in motion.
National Security Outlays in Fiscal Year 2006 (billions of dollars)
Department of Defense 499.4
Department of Energy (nuclear weapons & environ. cleanup) 16.6
Department of State 25.3
Department of Veterans Affairs 69.8
Department of Homeland Security 69.1
Department of Justice (1/3 of FBI) 1.9
Department of the Treasury (for Military Retirement Fund) 38.5
National Aeronautics & Space Administration (1/2 of total) 7.6
Net interest attributable to past debt-financed defense outlays 206.7
Total 934.9
To find out how much of the government’s net interest payments on publicly held national debt ought to be attributed to past debt-funded defense spending requires a considerable amount of calculation. I added up all past deficits (minus surpluses) since 1916 (when the debt was nearly zero), prorated according to each year’s ratio of narrowly defined national security spending—military, veterans, and international affairs—to total federal spending, expressing everything in dollars of constant purchasing power. This sum is equal to 91.2 percent of the value of the national debt held by the public at the end of 2006. Therefore, I attribute that same percentage of the government’s net interest outlays in that year to past debt-financed defense spending. The total amount so attributed comes to $206.7 billion.
Adding this interest component to the previous all-agency total, the grand total comes to $934.9 billion, which is more than 87 percent greater than the Pentagon’s outlays alone.
If the additional elements of defense spending continue to maintain the same ratio to the Pentagon’s amount—and we have every reason to suppose they will—then in fiscal year 2007, through which we are now passing, the grand total spent for defense will be $1.028 trillion. I confirmed the rough accuracy of this forecast by adding up the government’s own estimates of fiscal 2007 outlays for the various additional defense-related items, obtaining a total of $987 billion—an amount only 4 percent less than my ratio-based estimate. Future defense-related supplemental appropriations for fiscal 2007, which would hardly be surprising, might easily bring the lower estimate up the higher one.
Although I have arrived at my conclusions honestly and carefully, I may have left out items that should have been included—the federal budget is a gargantuan, complex, and confusing collection of documents. If I have done so, however, the left-out items are not likely to be relatively large ones. (I have deliberately ignored some minor items, such as the outlays of the Selective Service System and the National Defense Stockpile and the Treasury’s program to block financial flows to terrorists.) Therefore, I propose that in considering future defense budgetary costs, a well-founded rule of thumb is to take the Pentagon’s (always well publicized) basic budget total and double it. We may overstate the truth, but if so, we’ll not do so by much.
For now, however, the conclusion seems inescapable: the government is currently spending at the rate of approximately $1 trillion per year for all defense-related purposes. Moreover, even if I have erred in my calculations and overstated the correct amount somewhat, the total will certainly reach this astonishing sum very soon, given all the plans and programs already set in motion.
National Security Outlays in Fiscal Year 2006 (billions of dollars)
Department of Defense 499.4
Department of Energy (nuclear weapons & environ. cleanup) 16.6
Department of State 25.3
Department of Veterans Affairs 69.8
Department of Homeland Security 69.1
Department of Justice (1/3 of FBI) 1.9
Department of the Treasury (for Military Retirement Fund) 38.5
National Aeronautics & Space Administration (1/2 of total) 7.6
Net interest attributable to past debt-financed defense outlays 206.7
Total 934.9
http://www.independent.org/newsroom/article.asp?id=1941
To this date, and if we add up the spending of all these departments, we may have reached the trillion.
I bet this is still not enough for some, feeding the beast? :))
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