1981-05-04 Special Report

              dSG DEMOCRATIC STUDY GROUP. U.s. HOUSE OF REPRESENTATIVES
225·5858 • 1422 HOUSE OFFICE BUILDING • WAIHINGTON, D.C. 20511

HON. WILLIAM M. BRODHEAD (Michigan) - Chelrman RICHARD P. CONLON-Staff Director

SPECIAL REPORT
No. 97-21
"The worst thing that can happen is for
the nation to go on a defense spending
binge that will create economic havoc
at home and confusion abroad and that
cannot be dealt wi th wisely by the
Pentagon."
Melvin Laird*
November 30, 1980
May 4, 1981
THE IMPACT OF THE REAGAN DEFENSE BUDGET
The worst may happen. There is growing concern that
the huge increases in spending proposed by the Reagan Admin­istration
will, in fact, "create economic havoc" without pro­viding
any significant improvement in national defense.
The Administration proposes to increase military spending
from 25% to 38% of total expenditures over the next five
years. This will mean spending a total of $1.5 TRILLION on
defense alone during this period.
Many economists believe that these increases will fuel
inflation and exacerbate other economic problems. At the sarne
time, other critics contend that. the proposed increases amount
to little more than "throwing money at defense problems" and
that BILLIONS will be wasted on outmoded weapons and strategies.
This DSG Special Report contains the following sections:
I. Summary . . . . . . . . . . · · 3
II. Defense Budget Proposals . · · 5
III. Impact on Economy . . . . · . . 9
IV. Impact on National Security · · . . 13
* Melvin Laird is a former Republican Member of Congress (1952-1969)
who served as ranking Republican on the House Appropriations Sub com-
mittee on Defense, and later as Secretary of Defense during the
Nixon Administration.