Accession Number:

ADA616267

Title:

Defense Spending and the Economy

Descriptive Note:

Congressional testimony

Corporate Author:

CONGRESSIONAL BUDGET OFFICE (U S CONGRESS) WASHINGTON DC

Personal Author(s):

• Penner, Rudolph G.

Report Date:

1984-02-23

Pagination or Media Count:

17.0

Abstract:

Mr. Chairman, I appreciate the opportunity to testify today on the effects of defense spending on the economy. The United States is in the midst of a program of strengthening its military capabilities. The Congress has approved 264 billion in budget authority for the national defense function in fiscal year 1984. After adjustment for inflation, that represents an increase of about 40 percent over the 1980 level. The Administration has proposed further increases that, if enacted, would raise budget authority for national defense to 456 billion in fiscal year 1989. That would amount to additional real increases of 38 percent under the Administrations economic assumptions and 28 percent under CBOs assumptions, which anticipate higher future inflation. Again depending on economic assumptions, outlays under the Administration plan would comprise between 7 and 12, and 8 percent of gross national product in 1989, up from about 5 and 12 percent in 1980.

Descriptors:

• *ECONOMIC IMPACT
• *MILITARY BUDGETS
• CONGRESS
• COSTS
• ECONOMIC DEVELOPMENT
• ECONOMIC FORECASTING
• EMPLOYMENT
• GROWTH(GENERAL)
• INFLATION(ECONOMICS)
• LIVING STANDARDS
• RESOURCES
• UNITED STATES

Subject Categories:

• Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE