Military spending is about 3% of GDP. Edging toward 4% … [possibly the LOWEST percentage of GDP in American history] … NOT 30% of GDP.
More honestly, it is closer to 5-6% of GDP. The CIA Factbook now places it pretty much at just under 4%, but notes that things like the $24B the department of energy spends on nuclear weapons is not included, nor is much of our war spending in Iraq and Afghanstan (always leaving them off the budget and funding principally through emergency supplementals skews the figures).
The Congressional Budget Office places military spending at 20% of the total budget and non military discretionary spending at 18% of the budget. The OMB uses roughly the same numbers.
whitehouse.gov/omb/budget/fy2009/index.html
However, most people agree that these numbers are deceptive. For example, we currently spend about 8% of the budget simply servicing debt and that number is exploding over coming years, with a massive portion of that debt coming from military spending.
Also, some of our debt is hidden in how the government accounts for Social Security spending. One of the strangest myths in America is that Social Security is insolvent. The fact is that we have to project anemic growth and expenditures to infinity to even get a shortfall. The program currently runs at a surplus and has been a steady supply of low interest self debt.
There are 5 large blocks in Federal spending. Ranked by sheer size (largest to smallest):
Medicare
Military
Social Security
Non-military
Servicing Debt
Thanks to the first two, Debt is poised to take the #4 spot soon, and the #3 spot within a decade. Social Security is misleading. It is primarily a pool system, like a mandatory retirement fund. Ignoring the ideological questions, elliminating it all together would do virtually nothing for the deficit and would drive up the cost of debt significantly.
So this leaves Medicare and Military spending. If we count the war on terror and share of existing debt, Military is already arguably the real #1, but it is poised to be #1 by anyone’s accounting soon anyway. Based on the study results we’ve seen from the last few weeks, Bush’s proposed $3T+ budget (and $400B+ deficit) is still not enough of a massive shift to really put our military back to pre-Afghanistan readiness.
We can say, fine, get rid of Medicare. But we already pay the most for healthcare of any industrialized nation. Elliminating Medicare would place the the largest group of the most expensive patients back into the private system, which would make our current 10-18% medical inflation a fond memory.
If you want to call 3% (or 4%) of GDP “tiny”, consider this. 5% (0.05 out of every GDP dollar) goes to health care
administration now - and that is
without Medicare, which handles the most expensive patients.