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31. The FY2013 Defense Budget, the Threat of Defense Cuts and Sequestration and the Strategy-Reality Gap

Author:
Anthony H. Cordesman and Robert M. Shelala II
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The US may not face peer threats in the near to mid term, but it faces a wide variety of lesser threats that make maintaining effective military forces, foreign aid, and other national security programs a vital national security interest. The US does need to reshape its national security planning and strategy to do a far better job of allocating resources to meet these threats. It needs to abandon theoretical and conceptual exercises in strategy that do not focus on detailed force plans, manpower plans, procurement plans, and budgets; and use its resources more wisely. The US still dominates world military spending, but it must recognize that maintaining the US economy is a vital national security interest in a world where the growth and development of other nations and regions means that the relative share the US has in the global economy will decline steadily over time, even under the best circumstances. At the same time, US dependence on the security and stability of the global economy will continue to grow indefinitely in the future. Talk of any form of "independence," including freedom from energy imports, is a dangerous myth. The US cannot maintain and grow its economy without strong military forces and effective diplomatic and aid efforts. US military and national security spending already places a far lower burden on the US economy than during the peaceful periods of the Cold War, and existing spending plans will lower that burden in the future. National security spending is now averaging between 4% and 5% of the GDP -- in spite of the fact the US has been fighting two wars in Iraq and Afghanistan -- versus 6-7% during the Cold War.
Topic:
Defense Policy, Economics, Government, and Monetary Policy
Political Geography:
Afghanistan, United States, and Iraq

32. Interim Report-Planning for a Deep Defense Drawdown—Part I

Author:
Clark A. Murdock
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
As the defense budget is reduced in the coming years, the Department of Defense (DoD) will be confronted with not one but two budgetary threats: it will face not only fewer defense dollars but also a weakening defense dollar in terms of purchasing power. This weaker defense dollar, driven by the internal cost inflation of personnel, operations and maintenance (O), and acquisition accounts in particular, threatens to hollow out the defense budget from within. -
Topic:
Defense Policy, Economics, and Monetary Policy
Political Geography:
United States

33. U.S. Department of Defense Services Contract Spending and the Supporting Industrial Base, 2000-2011

Author:
David J. Berteau, Guy Ben-Ari, Gregory Sanders, Jesse Ellman, and David Morrow
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Spending by the Department of Defense (DoD) on services contracts, which range from clerical and administrative work to vehicle maintenance to research and development (R), has been largely neglected by past studies of DoD spending trends. Yet DoD spending on services contract actions amounted to just under $200 billion in 2011, more than 50 percent of total DoD contract spending and nearly a third of the entire DoD budget. Both the executive branch and Congress have implemented policies to improve acquisitions of services, but the impacts of their efforts remain uncertain without a clear, concise analysis of past spending. And the then Undersecretary of Defense for Acquisition, Technology and Logistics, Dr. Ashton Carter, has stated that: “Most of our services acquires, unlike weapons-system acquires, are amateurs… I intend to help them get better at it” (Speech at the Heritage Foundation, April 20, 2011).
Topic:
Defense Policy, Economics, Government, and Monetary Policy
Political Geography:
United States

34. Corporate Welfare in the Federal Budget

Author:
Tad DeHaven
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Rising federal spending and huge deficits are pushing the nation toward a financial and economic crisis. Policymakers should find and eliminate wasteful, damaging, and unneeded programs in the federal budget. One good way to save money would be to cut subsidies to businesses. Corporate welfare in the federal budget costs taxpayers almost $100 billion a year.
Topic:
Economics, Markets, Monetary Policy, and Financial Crisis
Political Geography:
United States

35. The EU's Response to the Financial Crisis: A mid-term review

Author:
Karel Lannoo
Publication Date:
04-2011
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Two years after the London G-20, CEPS Chief Executive Karel Lannoo finds that the EU is well advanced in delivering on the commitments made for the 2013 target date. Important steps have been taken on the institutional side, and regulatory changes are moving ahead. On some issues, in fact, such as remuneration, the EU has made even greater headway than the US. But certain key sensitive matters remain, such as bank resolution or structural changes.
Topic:
Debt, Economics, Global Recession, Monetary Policy, and Financial Crisis
Political Geography:
United States, Europe, and London

36. Revitalizing the Export-Import Bank

Author:
Gary Clyde Hufbauer, Meera Fickling, and Woan Foong Wong
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The United States has experienced persistent trade deficits for decades, and thoughtful observers have concluded that deficits cannot be sustained at levels much exceeding 4 percent of GDP annually. There are only two ways to decrease the trade deficit: reduce imports or increase exports. For global economic health, increased exports are a far better proposition.
Topic:
Economics, International Trade and Finance, and Monetary Policy
Political Geography:
United States

37. Estimates of Fundamental Equilibrium Exchange Rates, May 2011

Author:
William R. Cline and John Williamson
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
This policy brief updates our estimates of fundamental equilibrium exchange rates (FEERs) to the latest available data, which for exchange rates are the average rates of April 2011, and for the IMF's balance of payments forecasts, those published in the April 2011 issue of World Economic Outlook (WEO; see IMF 2011a). It is the central study in what has now become a regular annual cycle, in which we draw out what we believe to be the implications of the IMF's forecasts for the pattern that exchange rates need to take if the world is to approach a reasonably satisfactory medium-run position. This past year we also published an interim policy brief (Cline and Williamson 2010b) in which we updated our calculations to the average exchange rates of October 2010, as well as commented on Brazilian Finance Minister Guido Mantega's description of international monetary events as constituting "currency wars." As in the previous year, however, the November 2010 policy brief updated our estimates only for intervening changes in market exchange rates. We did not make use of the IMF's revised autumn WEO forecasts to update our estimates of FEERs; on the contrary, we assumed the FEERs estimated in May 2010 were correct. In contrast, this policy brief presents totally new estimates of FEERs.
Topic:
Economics and Monetary Policy
Political Geography:
United States and China

38. Corporate Tax Reform for a New Century

Author:
Gary Clyde Hufbauer and Woan Foong Wong
Publication Date:
04-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In his State of the Union address, President Barack Obama stressed four ingredients of American prosperity: faster innovation, better education, less deficit, and more jobs. As the president recognized in his address, the US free enterprise system drives the private sector to innovate, invest, and create jobs. This policy brief concentrates on how reforming the corporate tax system can strengthen the private sector, thereby spurring both innovation and job.
Topic:
Economics, Globalization, International Trade and Finance, Monetary Policy, and Financial Crisis
Political Geography:
United States

39. Capital Inadequacies: The Dismal Failure of the Basel Regime of Bank Capital Regulation

Author:
Kevin Dowd, Martin Hutchinson, Jimi Hinchliffe, and Simon Ashby
Publication Date:
07-2011
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
The Basel regime is an international system of capital adequacy regulation designed to strengthen banks' financial health and the safety and soundness of the financial system as a whole. It originated with the 1988 Basel Accord, now known as Basel I, and was then overhauled. Basel II had still not been implemented in the United States when the financial crisis struck, and in the wake of the banking system collapse, regulators rushed out Basel III.
Topic:
Economics, International Trade and Finance, Markets, Monetary Policy, and Governance
Political Geography:
United States

40. Limits of Monetary Policy in Theory and Practice

Author:
Vincent R. Reinhart and Carmen M. Reinhart
Publication Date:
09-2011
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The Federal Reserve's conduct of monetary policy casts a spell over market participants, commentators, and academics. The pages of financial newspapers parse subtle differences among the comments of Fed officials and delve deeply into potentially multiple meanings of official statements. Academic discussions argue that the path of the policy rate may (as in Taylor 2009) or may not (as in Bernanke 2010, and Greenspan 2010) have fueled a home-price bubble in the United States.
Topic:
Monetary Policy
Political Geography:
United States