The Pentagon

Government and GDP

The expansion in government and poor state of the economy got me thinking about how government growth is reflected in measured gross domestic product. So here is a wonky look at the treatment of government in the Bureau of Economic Analysis GDP data.

Data notes: By “government,” I mean total federal, state, and local. For 2009, I’m using the average of second and third quarter data. All data from BEA Tables here.

The Politics of Budget-Cutting

helicopterIn Washington, the symbolic almost always trumps the substantive.  Thus, legislators complain, for good reason, about pork and earmarks, which ran about $35 billion at their maximum, and ignore entitlements, which entail some $100 trillion in unfunded liabilities.

Civilian Personnel: The Missing Piece in the Pentagon’s Budget Puzzle

While most news stories have accurately characterized the Obama administration’s proposed military spending cuts as “modest,” the Pentagon is planning significant reductions in the number of active-duty troops in the Army and Marine Corps. Both forces will be larger than they were in 2001, but the active-duty Army will fall from a post-9/11 high of 570,000 in 2010 to 490,000. The Marine Corps will go from 202,000 to 182,000.

McCain: Interests of Defense Contractors May Conflict with US National Interest

USA Today reports that retired military officers join the boards of directors of, or become employees of, defense contractors and take home big bags of money doing so.  Not surprising.  At the same time, the paper reports, lots of them are being paid by the Pentagon to be “senior mentors” of their former colleagues. Not being government employees, but rather independent contractors, these folks aren’t subject to government ethics rules.  To take one example, as chairman of BAE Systems, Gen.

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