June 10, 2009

Budget Realities

I am not the pro's pro on the defense budget, but Michael O'Hanlon's worry in today's Post seems warranted.

For the Defense Department to merely tread water, a good rule of thumb is that its inflation-adjusted budget must grow about 2 percent a year (roughly $10 billion annually, each and every year). Simply put, the costs of holding on to good people, providing them with health care and other benefits, keeping equipment functional, maintaining training regimes, and buying increasingly complex equipment tend to grow faster than inflation. This is, of course, no more an absolute rule than is Moore's law about changes in computing capacity. But like Moore's law, it tends to hold up remarkably well with time, especially when downsizing the Defense Department's force structure is not really an option, and it is not today.