Showing posts with label GDP. Show all posts
Showing posts with label GDP. Show all posts

Sunday, October 17, 2010

The Imperial Defense of Pentagon Bloat

By David Sirotav from Commondreams.org

Beware the sophistry of budget talking points -- especially those seeking to deter any criticism of defense spending.

That's the lesson of these last few weeks, as establishment Republicans desperately try to thwart both progressives and tea party conservatives who are pressuring Congress to reduce Pentagon bloat.

The latest talking point du jour has been around in one form or another for years. It asks us to forget that a) America spends more on defense than every other major nation combined and b) the Pentagon, whose annual budget is now approaching World War II levels in inflation-adjusted terms, has lost track of trillions of taxpayer dollars. In light of those disturbing truths, we are nonetheless urged by Beltway Republicans to focus on the fact that defense spending is "4.9 percent of our gross domestic product, significantly below the average of 6.5 percent since World War II," as a recent Wall Street Journal editorial proclaimed.

That widely circulated article, aimed squarely at grassroots conservatives, was jointly written by three of the most influential Republican think tanks in Washington -- the Heritage Foundation, the American Enterprise Institute and the Foreign Policy Initiative. And like clockwork, the "percentage of GDP" nugget went from their pen to the GOP's well-oiled media machine.

Within days, RedState.com was bewailing supposedly "historically low (defense) spending" and citing the GDP talking point as a "rallying call." The American Spectator magazine, meanwhile, held up the op-ed as an "important reminder to new Republican congressmen" to refrain from "shortchang(ing) both our troops and American national security." Not surprisingly, that's when the "percentage of GDP" stat began being loyally parroted by establishment Republican voices on talk radio.

At one level, the GDP line is designed to simply avert attention from the $700 billion annual defense bill being, well, $700 billion. That's not only a massive sum, but also comparatively exorbitant. Yes, the Pentagon budget is so outsized that according to former Reagan Pentagon official Larry Korb, "(E)ven if the United States were to cut its (defense) spending in half it would still be spending more than its current and potential adversaries."

But, then, discussing defense spending in GDP argot is more than just distracting. It's dangerously incoherent, or just plain dangerous, because the language implies that military expenditures must increase as the economy expands.

Think about it: From a strictly defensive, protect-the-nation perspective, that assumption makes no sense.

"Does a more prosperous economy increase the risk that we will be attacked by a foreign power or by a terrorist group?" writes Slate's Tim Noah. "Of course not."

He adds that "a growing GDP may increase the level of defense spending we can afford, but it has no bearing on the level of defense spending we actually need."

This is true, except in one disturbing case: if -- but only if -- we assume the economy should grow primarily as a consequence of military dominance.

Herein lies the truly "dangerous" part of the GDP mantra. If Republicans in Washington believe American economic growth should be based on the United States militarily subjugating and exploiting foreign countries, then those Republicans can logically (if abhorrently) insist that Pentagon spending must remain a constant percentage of GDP.

Most elites in the GOP establishment, of course, would never openly admit to believing that our economy should be based on hegemonic conquest. We know this because the GOP establishment expressed unanimous outrage at anyone even vaguely suggesting that America wages war for energy resources.

But maybe that's the unspoken admission in the GDP-themed push for more military expenditures. Perhaps for all of the GOP's outrage at war-for-oil allegations, the Republicans' defense spending rhetoric exposes their truly imperial vision -- one that even the slickest talking points can no longer hide.

Monday, November 16, 2009

NMI takes part in workshop to develop islands' GDP

NMI takes part in workshop to develop islands' GDP

Monday, November 16, 2009

WAIKIKI, Hawaii-A team of CNMI government officials from the Department of Commerce and the Department of Finance, along with representatives from American Samoa, Freely Associated States, Guam, and the U.S. Virgin Islands participated in a weeklong session with officials from the Bureau of Economic Analysis, the U.S. Census Bureau and the Office of Insular Affairs in Honolulu, Hawaii.

The participants were welcomed by Nikolao Pula, director of the Office of Insular Affairs, who stressed the importance of the gathering.

The session was aimed at the collection of data required for the development of the island areas' Gross Domestic Product. The GDP is a measurement of the economic health used to determine the direction of change of an economic jurisdiction within a specified period of time.

“Without a GDP measure, it becomes very difficult to quantify the direction of the economy. It is common for people to generalize that the economy is in bad shape, but no one can quantify to what extent. This measure is important as it provides data on which way our economy is moving and to what extent the change is year-over-year,” said CNMI Commerce Secretary Michael Ada.

The National Income and Products Accounts are accounts developed and used by the Bureau of Economic Analysis to develop the final results of the National GDP, as they are one of the primary sources of data on economic activity in the nation. All of the insular areas have gone without a GDP measure to date; however, efforts have been ongoing since early 2005 to develop such a measure. Due to the small size and economic anomalies that exist within the island areas, it has been difficult to utilize the national GDP measures and apply them to the island areas.

“This session was very helpful as it allowed the island governments to understand what data is important for the BEA to collect in order to arrive at the GDP's for each of the jurisdictions. We were able to provide wage data, sales revenues, and other economic data to aid the BEA in their analysis and calculations,” said Marie Muña, of the Electronic Data Processing Division of the CNMI Department of Finance.

The CNMI was required to make a presentation that discussed the data from the CNMI's audited financial statements, wage data, and gross receipts data. The CNMI team was required to address several questions from federal officials with regards to CNMI relevant data.

“We answered questions and provided information relevant to Private Consumption Expenditures, Income data, and Governmental Expenditures. We were able to ask questions and listen to detailed analysis from BEA economists, as well as answer many of their questions as to operations and finances within the CNMI,” said Vivian Nogis from the Division of Customs Service.

The Office of Insular Affairs provided the CNMI with a technical assistance grant to cover the cost to send four CNMI officials to Honolulu, Hawaii for the event. According to Canice Diaz of the Division of Revenue and Taxation, all islands were appreciative of the OIA for its support of this effort.

“It was beneficial to work alongside the other insular areas to understand the commonalities and differences within the areas. It was also helpful to speak directly with the people who are working to assist the islands in developing their GDP,” said Diaz. (PR)