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Download e-book for kindle: America’s Security in the 1980s by Christoph Bertram (eds.)

By Christoph Bertram (eds.)

ISBN-10: 1349065439

ISBN-13: 9781349065431

ISBN-10: 1349065455

ISBN-13: 9781349065455

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5% to 3. 7% range. 5% growth rate) would reduce the GNP by $95 billion in FY 84 and Federal revenues by nearly $20 billion. Plainly, economic performance is a critical variable in the Reagan Administration's fiscal policy. The revenue shortfall could well be greater if Congress refuses to approve the various revenueraising measures proposed by the President in September 1981. Moreover, the Administration projects FY 84 interest spending at $68 billion, close to projected expenditures for this year even though the debt will be at least $100 billion higher by 1984.

Thus the Department of Defense (DOD) is almost certainly going to have to operate within the limits of a fiscal policy intended to reduce deficits each year and achieve a balanced budget for FY 84. The currently planned expansion of defence spending is starting at a time when Federal deficits are at near record levels (an estimated $55-60 billion in FY 81 ). In the past, when defence spending increases began, budgets were in balance; moreover, inflation was minimal and the economy was experiencing strong growth, which generated added tax revenue.

From China. This rationale did not sit well with Congress, especially since the Chinese did not develop a capability to attack the United States, US-Chinese relations began to thaw, and there were technical problems with the proposed ABM system. As a result, President Nixon reorientated the emphasis of the ABM system towards defence of US ICBM sites, giving up almost completely the defence of American cities. Even today, the mission most commonly cited for a new ABM system is to defend US strategic forces, and more specifically, to defend land-based missiles.

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America’s Security in the 1980s by Christoph Bertram (eds.)

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