Yes, There Could Be a Peace Dividend

The cold war is over. There is simply no rationale for a defense budget of the size now contemplated by the Bush administration. One need not be an expert in military strategy or international affairs to understand that spending anywhere near $300 billion on defense in Fiscal Year (FY) 1991 is an irresponsible waste of money.

The administration’s budget proposes that it be given the authority in FY 1991 to commit $307 billion to be spent for military purposes. Actual spending would be about $303 billion, representing a 2.3 percent increase in nominal terms, which an assumed 4.9 percent inflation rate translates into a 2.6 percent cut in real terms. This budget provides for only a slight change in the rate of decline since th...