Tying US Defense Spending to GDP: Bad Logic, Bad Policy

Abstract

Talent suggested that pegging the defense budget to GDP would focus public debate regarding the budget squarelywhere it belonged, on mandatory spending programs, and promote the more efficient use of defense dollars.12 In April 2007, analysts at Heritage wrote that the White House and Congress should commit now to spending four percent of [GDP] on national defense even after any drawdown ofUS forces inAfghanistan or Iraq.47 Suggesting that defense spending should be pegged at four percent of GDP is one thing; finding a way to pay for such a massive commitment against competing needs for mandatory and nondefense discretionary spending is something else entirely.