Friday, January 07, 2011

America plans to cut expenditure on defence

Reportedly, the Obama administration has planned to cut US' defence spending. The GOP-controlled US House of Representatives has been given a hint earlier. Last year, the UK also announced a "deep cut" in defence as an austerity drive to cope with tough financial challenges. Under-spending in defence and security could, to be very sure, tempt adversaries to be more adventuristic, but, as the Soviet's experience in the 1970s has clearly shown, over-spending in the military complex could also result in massive misallocation of economic resources that would, in turn, lead to social instability as well as political turbulence. It can be expected that, while the budgetary objective will obtain the support of both sides of the partisan divide in the US Congress, there would also be debates on geographical as well as functional priorities.

UK's defence cuts & implications on Falkland